The carried interest landscape across Asia is entering a period of significant evolution. As governments refine, and in some instances re-define, tax frameworks, investment managers are assessing what these changes could mean for their fund structures, operations and long-term strategies.

To explore these developments, EWM Global recently hosted Carried Interest Tax Reform forums in Hong Kong and Singapore, bringing together leading investment managers, industry professionals and tax specialists for focused discussions on the future of carried interest across the region.

Understanding the evolving regulatory landscape

In Hong Kong, discussions focused on the proposed legislation to reduce tax on carried interest, at both the corporate and individual level to 0%, and to widen the scope from just Private Equity to capture all asset classes including digital assets and private credit / debt.

The key for the investment manger’s finance and/or HR team(s) is the ability to track and trace the flow of carried interest to prove that it is performance related and therefore exempt from taxation.

In Singapore, we explored the implications of evolving carried interest tax considerations across the Asian markets and what that might mean in terms of staying competitive, fund structures, retaining and attracting talent, and how carried interest plan structures may evolve.

The conversations highlighted a common theme: regulatory change brings both complexity and opportunity.  Organisations that proactively assess the implications and adapt their approaches will be best positioned to navigate the changing landscape, attract and retain the best global talent, and optimise business performance.

Key considerations

1. Assessing the impact of regulatory change

As carried interest frameworks continue to develop, investment managers will need to evaluate how changes may affect existing arrangements, future fund structures and overall operating models.

2. Reviewing structures and administration processes

Changes in the tax treatment of carried interest can create additional complexity around structuring, governance and administration. Firms will need to consider whether their existing workflows, and administration processes remain effective, or if they need to be re-designed to align with evolving requirements

3. Staying competitive

Globally, carried interest is the most important component of remuneration strategies for attracting and retaining investment professionals. As competition for both local and global talent ramps up across Asia’s private capital markets, firms must consider if their current incentive mechanisms are fit for purpose.  

Turning regulatory change into strategic opportunity

While reform introduces uncertainty, it also creates an opportunity for organisations to review their structures, strengthen their processes and position themselves for future growth.

Investment managers that engage early, understand the implications and seek specialist guidance can navigate change more effectively while continuing to support their strategic objectives.

How EWM Global supports carried interest compliance

As carried interest frameworks continue to evolve across Asia, organisations need more than an understanding of regulatory change, they need operational processes that are transparent, efficient and capable of supporting increasingly complex compliance requirements.

EWM Global provides the technology and operational infrastructure to simplify the administration of carried interest plans. Our platform delivers accurate calculations, centralised record-keeping and auditable carried interest track and trace reports, helping organisations manage carried interest arrangements with greater confidence throughout the fund lifecycle.

If you’re reviewing your carried interest strategy, or preparing for evolving tax and regulatory requirements, please do get in touch with our team to learn about how EWM Global can support you.

Please find the contact  form below.

Last week’s LPGP Conference in London brought together private equity leaders to discuss the forces reshaping the industry today, and the themes were strikingly consistent across sessions and conversations.

Fundraising Challenges Reshaping the Market

Tougher fundraising conditions, delayed exits and slower distributions are increasingly defining the current market environment. These pressures are not only affecting deal flow and liquidity, but are also reshaping how firms think about talent, incentives and operational resilience.

Incentive Compensation and Talent Retention

A key focus of discussion was how general partners are responding to this environment through their approach to incentive compensation, carry and co-investment. These mechanisms remain central to attracting and retaining top talent in an increasingly competitive market. However, many firms still rely on manual administration processes, introducing operational risk at a time when regulatory and governance scrutiny continues to increase.

AI, Automation and Operational Foundations

Alongside this, operational resilience emerged as a consistent theme throughout the conference. While AI continues to dominate conversations across front, middle and back-office functions, there was a clear recognition that technology alone is not a silver bullet. Without robust underlying processes, governance frameworks and effective automation, AI adoption risks amplifying inefficiencies rather than solving them.

Instead, the emphasis is shifting toward getting the foundations right, streamlining processes, improving data quality and embedding scalable operational infrastructure. In this context, AI becomes an enabler rather than a solution in itself.

Building Resilience for Long-Term Growth

What stood out most across the event was the balance between immediate pressures and longer-term transformation. Firms are not only navigating a challenging fundraising and liquidity environment but are also re-evaluating how their operating models support resilience, growth and talent strategy.

As the industry continues to evolve, the ability to align people, process and technology will increasingly define competitive advantage in private equity.

How EWM Global Can Help

As private equity continues to evolve, having the right operational foundations is more important than ever. If you’d like to explore how EWM Global can support your firm, complete the contact form below and we will be in touch.

The UK’s Carried Interest reform is, first and foremost, a tax change. But its consequences reach well beyond the tax function. Meeting the new rules depends on data – award dates, vesting events, residence and workday records – that sits with HR departments and fund administrators, making them central to a process their fund managers, and ultimately HMRC, will rely on.  

Carried Interest, or “carry”, is the profit share paid to investment managers once investors have received their capital and a preferred return. Until recently, in the UK it was taxed based on the nature of the underlying returns – typically capital gains – albeit subject to a minimum tax rate (32% in the 2025/6 tax year). 

From April 2026, carry is treated as trading profit, subject to income tax and Class 4 National Insurance contributions (NICs). “Qualifying” carry is adjusted by a 72.5% multiplier, resulting in a top tax rate of around 34.1% for participants; carry that does not qualify is taxed at up to 47%. The rules determining qualifying carry are complex and impose a significant evidence burden. 

Most carry recipients will be impacted – and importantly, the new rules are now relevant to overseas-based participants who spend some of their time working in the UK. The rules are drawn widely, and they apply to existing carry schemes as they pay out, not just new schemes.  

Often, although not a requirement to benefit from the qualifying carry rules, carry schemes are associated with co-investment arrangements whereby firms and investment team members invest their own money alongside external investors. The tax treatment of returns from co-investment is not changed, meaning that the tax is still based on the nature of the underlying returns. 

For fund managers, and their HR and administration teams, this is not a one-off exercise in reading the legislation. It’s an ongoing operational task – capturing the right data, keeping it current and producing it on demand, with tax advice to steer it. In practice, this breaks down into a handful of distinct demands.