US lawmakers are considering delaying the introduction of a higher tax regime for private equity firms that go public by five years, after coming under intense pressure from firms within the industry over the draft legislation during the summer.

US buyout firms have been lobbying against legislation introduced in June by US Senators Max Baucus and Chuck Grassley that would involve private equity firms that go public paying tax at the 35% corporate rate rather than the current 15% capital gains tax rate they pay thanks to their partnership structure.