BEPS Pillar 2: Implications for the private equity industry

While the OECD’s proposals for a global minimum effective corporate tax rate are primarily aimed at large trading groups, in principle they can affect any kind of entity or structure that meets the scoping criteria – including private equity (PE) houses, their funds and asset holding companies (AHCs).

In this document we examine how the rules apply in a PE context and look at the issues that houses will need to think about when:

• assessing the rules' impact at house level;
• establishing new funds and determining the position of existing ones; and
• acquiring portfolio businesses.

The exposure dashboard within the document is designed as a risk assessment tool to help managers identify where there might be exposure within the group and wider fund structures.