For good measure, Mr. Moritz cast aspersions on that business model, portraying private equity as wreckers of companies
and job destroyers as well as a “symbol” for “economic inequality.”
And then he tied it all to Mr. Trump, throwing in a line
that the relationship between Mr. Schwarzman and the president resembled a scene from “Goodfellas.”
The Op-Ed article was so over the top in its attacks on Mr. Schwarzman and private equity that it obscured some very valid points.
Under this tax treatment, top executives in both private equity
and venture capital pay lower capital gains taxes, instead of higher income taxes — “an indefensible quirk in the United States tax code,” Mr. Moritz wrote.
Bill Gates has called the returns of venture capital funds “pathetic.”
A few big funds, including Sequoia, dominate a shrinking market.
Carried interest was in the cross hairs for elimination under the Obama administration
and has drawn complaints from many, including Mr. Trump, as giving an undue tax break to wealthy private equity and venture capital fund managers.
The man with the $3 billion in this case is Michael Moritz, a storied partner at the venture capital firm Sequoia Capital.
There are other challenges facing venture capital: Near-zero interest rates are like gasoline on venture capital investments.
In other words, there will be shakeout among all funds, a disruption that will hit private equity, venture capital and all other funds
