Work continues on the planned overhaul of the Limited Partnership Structure in Ireland.
The Irish Government continues its work to reform the structure of limited partnerships by drafting the heads of a new bill to amend existing legislation. This legislation is a critical element of the strategy for the financial services sector and for the continued popularity of Ireland as a preferred location for funds.
The purpose of the Bill is to amend the Investment Limited Partnerships Act 1994, which is used for regulated limited partnership (LP) structures, and the Limited Partnerships Act 1907, which is used for unregulated LP structures. The proposed amendments aim to bring both unregulated and regulated LPs into line with other fund structures and, in the case of regulated LPs, with standards applicable under AIFMD, as well as international standards for limited partnership funds generally.
The LP is the conventional structure used in the EU and around the world for venture capital, private equity and all kinds of “real economy” investing by investment funds, in SME and mid-cap companies and in sectors such as infrastructure, technology and sustainable energy.
These amendments will enable Ireland to provide a workable regulated LP structure subject to EU norms. It is difficult to predict when the proposed changes will become law but we hope that they will be effective in the early part of 2018.