National Coalition of Minority- and Women- Owned Businesses Formed to Oppose Tax Increase on Carried Interest

    WASHINGTON, Sept. 5 /PRNewswire-USNewswire/ -- A consortium of minority
 and women business leaders in the private equity, real estate and
 investment management industries today announced the formation of the
 Access to Capital Coalition (ACC), to oppose efforts in Congress to change
 tax laws in a way that would adversely affect minority and women
 entrepreneurs. The 130 percent tax increase that HR 2834 would impose on
 much of the earnings of investment partnerships, would introduce additional
 challenges for minority- and women- owned investment businesses in gaining
 and maintaining access to capital. The legislation could also have a
 broader negative impact on entrepreneurs whose ventures are funded by
 investment firms.
     H.R. 2834 would eliminate the 15 percent long-term capital gains
 treatment of investment partnerships profit shares -- generally referred to
 as carried interest -- and instead subject it to an ordinary income tax
 rate of 35 percent. Similar proposals are being considered in the Senate.
 Particularly hard hit, though, will be small and mid-level firms -- the
 level at which most minority and women investment and management firms
 operate today.
     The Access to Capital Coalition will provide a unique and informative
 perspective to Congress on the unintended consequences, of the legislation
 on minority- and women- owned investment management firms and the
 constituencies and markets that they serve.
     Coalition members include the National Association of Investment
 Companies (NAIC), which is comprised of many of the nation's largest
 African American, Hispanic, Asian, and minority women-owned private equity
 and venture capital firms, the Association of Asian American Investment
 Managers (AAAIM), and Women Entrepreneurs Inc. Willie E. Woods, Jr.,
 Managing Partner of ICV Capital Partners, New York, NY and Chairman of NAIC
 and a founding member of ACC, indicated that "the present carried interest
 policy has been essential to attracting top talented minorities and women
 to the industry as independent firms and fund managers. Its elimination,
 consequently, would have the unfortunate effect of impeding this great
 progress."
     According to Luis G. Nogales, Founder and Managing Partner of Nogales
 Investors, Los Angeles, CA, "this legislation, regrettably, not only could
 hinder the progress that minority firms have made in the private investment
 industry, but could also discourage important economic activity in key
 places, especially concerning investments in ethnically diverse communities
 and small businesses."
     "I applaud and welcome efforts by Congress to support the working
 families that drive our economy, but this legislation as it is currently
 drafted will hinder those efforts," said Robert L. Johnson, chairman and
 CEO of The RLJ Companies.
     Earvin "Magic" Johnson, Chairman and CEO of Johnson Capital Management
 adds, "I strongly support the efforts of the ACC coalition and
 organizations like NAIC that are engaged in activities to support women and
 minority businesses."
     About the Access to Capital Coalition
     The Access to Capital Coalition (ACC) is an association of minority and
 women-run businesses, affiliated trade associations and minority and women
 entrepreneurs working in the private equity, hedge fund and real estate
 partnership industries, and minority and women entrepreneurs. The coalition
 has been established to oppose legislation to increase the tax rate for
 carried interest. For more information, visit
 http://www.accesstocapitalcoalition.com.
     About the National Association of Investment Companies
     The National Association of Investment Companies (NAIC) is the industry
 association for alternate asset class investment management firms that
 invest in privately held businesses which have a high probability of growth
 and the ability to generate significant returns for investors and
 shareholders. NAIC members consist of investment management firms that are
 owned by ethnic- minorities and/or invest with ethnic-minority
 entrepreneurs and/or invest in ethnic-minority markets. For more
 information, visit http://www.naicvc.com.
     About the Association of Asian American Investment Managers
     The Association of Asian American Investment Managers (AAAIM) is an
 alliance of prominent and successful Asian American business leaders. The
 focus of the alliance is to promote excellence in Asian American investment
 professionals by developing strategic relationships between Asian American
 investment managers and institutional pension funds. For more information,
 visit http://www.aaaim.org
     About the Women Entrepreneurs, Inc.
     Women Entrepreneurs, Inc. is a nonpartisan business association
 dedicated to increasing economic opportunities and financial security for
 women entering the volatile but rewarding career of entrepreneurship. WE,
 Inc. advocates for policies that encourage business ownership by women and
 utilize key female business networks to provide information and resources
 to entrepreneurs at all stages of business development. For more
 information, visit http://www.we-inc.org.
 
 

SOURCE Access to Capital Coalition
RELATED LINKS
http://www.better-investing.org

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