Master Limited Partnerships (MLPs)
24 Pages Posted: 7 Nov 2014
Date Written: June 9, 2014
MLPs are publicly listed partnerships that invest primarily in the energy sector. The market has grown substantially in the past several years and is expected to continue to grow as the U.S. energy infrastructure market requires billions of dollars of additional investment. MLPs tend to provide attractive current yield and offer the opportunity for price appreciation. However, MLPs are more complicated from tax, accounting, and administrative perspectives, and tax-exempt investors may be subject to tax liabilities from UBTI.
Keywords: MLP, master limited partnership
JEL Classification: G23
Suggested Citation: Suggested Citation