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Private funds can come with large tax bills for investors

The issue centers on how some advisers market private funds, with investors potentially facing tax costs they were not clearly told about.

Reported · Written up by our desk · Fund Industry

The Wall Street Journal Markets reports that investors in certain private funds may run into unexpectedly large tax bills.

According to the outlet, the problem is not just the fund structure itself, but also how advisers present the products, with some promotional efforts failing to fully flag the tax implications investors need to understand.

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