A bill to amend the Investment Limited Partnership Act 1994 has been published, introducing a number of enhancements to the Irish investment limited partnership (“ILP”).
The publication of the bill follows an Irish Government press release issued on 13 June 2019, in which it was stated that the legislation is a key deliverable of the Irish Government’s IFS 2025 Strategy and is an important part of Ireland’s strategy to develop its international financial services sector and to take advantage of the growth in non-bank finance in Europe.
Irish investment funds may be established as investment companies, Irish collective asset management vehicles (“ICAVs”), unit trusts, common contractual funds and ILPs. While unit trusts, investment companies and ICAVs constitute by far the majority of fund structures in Ireland, there is recognition of the preference for limited partnership structures as the vehicle of choice for private equity, venture capital and “real economy” investing for international promoters. Accordingly, the aim of the bill is to bring ILPs in line with other Irish fund structures and global standards and to make Ireland a more attractive domicile for private equity funds.
The bill will now progress through the Irish legislative process and we will continue to keep you updated in relation to its progress. This welcome reform of Irish partnership law reflects the Irish Government’s continued commitment to growing the funds sector in Ireland and ensuring that Ireland remains one of the leading fund domiciles in Europe.