re: #4 researchok

True- but the deal only pays out in a big way only if the company profits.

Management has a vested interest in doing a good job in returning yields to investors- including those pension funds.

But those incentives would be there whether the carried interest was taxed at 35% or 15%… One could argue that there would be more incentive with a 35% tax… PE/Hedge Fund kings would need a bit more of a return to buy that third private jet.