New York reported probing tactics of finance firms

At least a dozen private-equity firms have been subpoenaed by New York's attorney general in a probe of whether they took advantage of a tax strategy to save hundreds of millions of dollars, according to media reports first published Saturday. The attorney general, Eric Schneiderman, has in recent weeks subpoenaed firms including Apollo Global Management,  KKR , TPG Capital, Sun Capital Partners and Bain Capital, according to sources cited by the Wall Street Journal, the New York Times, Bloomberg News and Reuters. At issue is the practice of converting some management fees collected from investors into fund investments, which are taxed at a much lower rate than ordinary income….

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