Recent upheavals in the financial markets followed by the credit crunch and the intervention by several central banks to prop up the financial system have highlighted the volatility confronting investors and regulators around the world. It is no surprise that the focus is again on management of funds, the compensation paid for management of funds and its effect on the taxable income of funds and their target companies. In this context, this article focuses on recent events affecting private equity in the United Kingdom, Australia and the United States.