Can tax advisers continue to keep private equity firms from the Revenue's clutches?

With politicians and the media circling, and the head of their trade association having resigned out of the blue following a feeble appearance in front of the Treasury Select Committee, it's not been a spectacular week for private equity executives. That's why they're increasingly turning to their tax accountants for help to at least hold onto their fortunes - even if their reputations are slipping from their grasp.

"Private equity firms tend to be mostly small organisations, despite the colossal value of the deals they engage in - but they nevertheless need to minimise their liabilities," says Ben Perry, tax division manager at recruiters Marks Sattin. "Individual partners want to keep the taxman at bay; they rely more on personal tax advisors for strategic advice in that area."

Demand for relevant specialist tax consultancy skills by the Big 4 outweighs supply, says Alex Laurie, tax division associate director at finance recruiters ECHM: 'The Big 4 are willing to consider people who may not have had previous exposure to private equity, provided they have strong technical tax backgrounds and can be trained into specialist roles," she says.

Corporate tax specialists are also highly sought-after to arrange the financial affairs of the companies newly acquired by private equity firms, says Perry: "All organisations want to keep their tax bills down. Private equity firms are no exception - they need to reduce corporate tax so as to optimise future realisation of their investments.

"Newly qualified accountants can command around £55,000, with bonuses of up to 30%. More senior tax experts - those dealing with partnership tax - could earn up to £110,000, with bonuses of 50%, largely dependent on the number of private equity partners being handled."