Expectations are growing on Wall Street that Congress will move to increase the tax rate that applies to carried interest, a major change that would slice into the main source of wealth for private equity executives, who are currently enjoying record prosperity.

Private equity executives, along with the lawyers and bankers who advise them, say the increasing likelihood of a change in carried interest tax is one of the main reasons buy-out groups are considering public offerings. Blackstone has already filed for an IPO and others are expected to follow soon.