Paris, a magnet for private equity? #
The private equity industry might be the next sector to witness a massive shift from London to Paris. But why, you ask? Let’s dive into the details.
According to Bezhan Salehy, a tax lawyer at London-based Macfarlanes, France is emerging as a strong contender to the UK market for private equity. The impending British elections hold a significant clue to this potential exodus.
Why private equity managers might move #
Private equity managers in the UK are on the verge of a potential tax hike. The Labour Party’s current plans indicate a jump in tax on their capital gains, known as ‘carried interest’, from 28% to 45%. This steep increase could be a game-changer, forcing many to reconsider their base.
And guess which city is ready to welcome these managers with open arms? Yes, you guessed it right. Paris! Standing to gain nearly ten points in competitiveness against Europe’s first ‘hub’, Paris might be the next hot destination for private equity managers.
Another Brexit wave in the offing? #
Remember the influx of bankers to France post-Brexit? Well, Paris is hopeful of a similar wave hitting its shores, thanks to the looming tax hike in the UK. A move that could make Paris a significant player in the private equity market, much to London’s chagrin.
So, will Paris become the new epicentre for private equity managers? Only time will tell. But one thing’s for sure – Paris seems ready to grab this golden opportunity with both hands.
Here’s a quick rundown of what we discussed:
- Paris could be the next big thing in the private equity market
- Impending tax hike in the UK might force managers to move
- Paris stands to gain in competitiveness against London
- Another Brexit wave could hit Paris, making it a significant player in the private equity market
