DANISH BOMBSHELL

In Denmark, a law has been passed to remove the favourable tax status enjoyed by leveraged loans.

It may constitute only a small fraction of the European private equity market in terms of deals done and funds raised, but Denmark has punched above its weight with a powerful blow to an asset class increasingly up against the regulatory ropes.

At the beginning of June, the Danish Parliament (Folketing) passed new legislation reducing the interest deductibility on loans used to finance takeovers.