Financial Times FT.com

Buy-out firms braced for lower returns

By Vanessa Houlder

Published: February 11 2008 02:00 | Last updated: February 11 2008 02:00

Private equity firms are braced for substantially reduced returns this year, but they view the growing tax burden as a bigger worry, according to an industry survey.

Changes to the capital gains tax regime and rules for "non-doms" are expected to make the UK a less attractive location for private equity executives, according to nearly half the 700 respondents in the survey by Simmons & Simmons and Private Equity News.

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