On 19 July 2017, the Irish Finance Minister announced that the Government had approved the legal drafting of the Investment Limited Partnership (Amendment) Bill 2017. Whilst an ‘Investment Limited Partnership’ was established in 1994, very few asset managers have availed themselves of the structure, with most concerned with the legislative limitations, which include:
- the requirement for a separate GP for each partnership and minimum capital requirements for the GP; and
- a requirement to file the LPA with the Central Bank which means it is then publicly available.
The purpose of the Amendment Bill is to enhance and reform the existing legislation, to align it with international standards for private equity funds and certain requirements of AIFMD. It is currently progressing through the Irish Parliament so we are likely to see further details over the coming weeks.
With a number of fund managers looking to establish English Limited Partnership style funds outside the UK, the proposed Irish reforms will give fund managers more options when considering post Brexit structures.