Tax Efficiency: Puerto Rico Act 60 / PEF Benefits

• Qualifying investments under Puerto Rico’s Act 60 Private Equity Fund regime may provide significant tax advantages, including:

• Fund-level tax efficiency

• Tax-advantaged distributions

• Up to a 60% super-deduction for eligible Puerto Rico investors

• These benefits materially improve after-tax returns without increasing investment risk.

A financial analyst examining detailed investment reports.

Structural Advantage: Puerto Rico Dealer Protection (Act 75)

Many distribution businesses in Puerto Rico benefit from Act 75, which limits a supplier’s ability to terminate or impair a distributor relationship without just cause. This provides:

1. Enhanced revenue durability

2. Reduced counterparty risk

3. More predictable long-term cash flows

4. As a result, certain Puerto Rico distributors exhibit lower risk profiles than comparable mainland businesses, despite being acquired at lower valuations.