Economics
Calpers Carried-Interest Data May Hold `Shock Value' for Public
- Report will compile payments that get special tax treatment
- Presidential candidates have made issue of Wall Street profit
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Private-equity firms are bracing for Calpers to disclose their profits from investing the pension’s money, the sort of gains that have triggered a debate over why some Wall Street companies pay lower tax rates than most American workers.
The $291 billion California Public Employees’ Retirement System is aggregating data on so-called carried interest earned from buying and selling companies that is taxed as capital gains. It shares those proceeds with managers of more than 700 private-equity funds, including those run by Carlyle Group LP, Blackstone Group LP and Apollo Global Management LLC. Staff members will present the findings to the governing board in November.