IRS will ban hedge fund tax loophole on carried interest, Mnuchin says

Big names have appeared to be embracing the maneuver, which requires setting up limited liability companies, or LLCs, for managers entitled to share carried-interest payouts. Four LLCs have been created under the name of Elliott Management Corp., the hedge fund giant run by Paul Singer. More than 70 have been established under the names of executives at Starwood Capital Group Management, the private-equity shop headed by Barry Sternlicht.