One Big Beautiful Bill Act

On July 4, 2025, President Trump signed the One Big Beautiful Bill Act (“OBBBA”) into law. Several provision in the OBBA have tax implications for private fund sponsors and their investors. Notably, a number of potential provisions that could have been included in the bill that would have been very harmful to private funds or their investors ultimately were excluded. Authors highlight the key domestic and international tax changes that are relevant to private fund sponsors and their investors, as well as some of the proposals that did not make it into the final version of the bill. In the initial months since the enactment of the OBBBA the funds industry has begun to respond to new legislation. Many funds have already updated their private placement memoranda (“PPMs”) to address the tax changes included in the OBBBA. Certain provisions of the OBBBA have prompted other reactions, as discussed in the article.