Does Cable Car’s strategy incur UBTI for tax-exempt investors?


In general, no. By avoiding investments in certain pass-through entities and maintaining net exposure below 100%, Cable Car does not generally take on acquisition-related debt. However, Cable Car is not a tax adviser and cannot guarantee that its strategies will not result in unrelated business taxable income. Pension funds and other tax-exempt clients who wish to ensure that they avoid UBTI may be able to invest through an offshore blocker corporation.

Posted in: Institutional allocators