A dozen private equity firms are the subject of a new inquiry by the New York attorney general into the legitimacy of a tax strategy the companies used to save potentially hundreds of millions of dollars. Bain Capital, Apollo Global Management, and Silver Lake Partners are among the companies being looked at. The subpoenas issued seek to get at the extent to which the companies used what are known as management fee waivers to tax income from some fees as capital gains, which are taxed at only about 15 percent.
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