Trump Signs One Big Beautiful Bill Reforming Private Equity Tax Provisions

President Donald Trump signed the One Big Beautiful Bill Act, which notably did not alter the favorable tax treatment of carried interest or change the long-term capital gains tax rate, providing stability for private equity funds and their investors. Meanwhile, private equity's intersection with the passion economy is fostering a new type of leadership that can balance founder-driven culture with scalable operational discipline, preserving the unique identities of acquired companies while introducing necessary process improvements. However, criticism of private equity persists, as highlighted in Megan Greenwell's book 'Bad Company,' which portrays the industry as detrimental to American workers and communities, though it also showcases individuals fighting back. In the corporate finance arena, CEC Entertainment, the parent company of Chuck E. Cheese, is struggling to refinance $660 million of debt in a challenging credit environment, potentially forcing a shift to equity financing with both strategic benefits and risks. Additionally, strategic use of restrictive covenants in private equity transactions remains a critical consideration for employers navigating workplace legalities amid industry changes.