June 8, 2021

Structured Capital | Biden Tax Proposal


Biden’s New Tax Plan Surprises with Retroactive Capital Gains Tax Changes

President Biden’s new tax plan, announced at the end of May, included a proposed change to the maximum capital gains tax rate from 20% to the proposed ordinary rate of 39.6%. Moreover, the proposed capital gains rate increase will be applied retroactively, with an effective date of April 28, 2021. While many owners and entrepreneurs were anticipating an increase in capital gains taxes from the Biden administration, most were expecting changes to go into effect no sooner than 2022, providing an opportunity to sell businesses and/or assets in 2021 at current rates.


Benefits of Trive’s Structured Capital Strategy

Partial Sales or Liquidity Events

Through its Structured Capital strategy, Trive has a demonstrated track record of partnering with business owners to help generate partial liquidity from their companies. Our approach allows owners to retain control of their businesses while also participating in the upside generated through Trive’s partnership and the long-term growth of the company.

Tailored and Tax-Efficient Solutions for Middle Market Businesses

Trive’s Structured Capital approach remains infinitely flexible as we seek to tailor bespoke and efficient investment structures for our partners. Whether buying out a minority partner or helping with estate planning or diversification, Trive can create a capital solution that fits the needs of the business. As an example, debt-averse owners can utilize patient, non-cash-paying capital to align with long-term value creation.

Value-Add Partners

Trive’s hands-on approach to investing and experience across a wide range of industries allows us to be a true resource to management. Our investment team and Operating Partners are well-suited to help identify value creation initiatives and execute on organic and acquisitive growth opportunities.


If you would like to discuss a potential Structured Capital opportunity, please contact us at structuredcapital@trivecapital.com

About Trive

Trive Capital is a Dallas, Texas based private equity firm with more than $7 billion of regulatory assets under management. Trive focuses on investing equity and debt in what it sees as strategically viable middle-market companies with the potential for transformational upside through operational improvement. We seek to maximize returns through a hands-on partnership that calls for identifying and implementing value creation ideas.

The Trive team is comprised of seasoned investment professionals who have been involved in over 250 middle-market transactions representing in excess of $7 billion in revenue across Trive’s targeted industry sectors and situations.

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