Investment Limited Partnerships (Amendment) Bill 2019
The Irish Government has published the Investment Limited Partnerships (Amendment) Bill 2019 (“the Bill”) which aims to substantially overhaul the current Irish legislation governing regulated investment limited partnerships (ILPs).
Why choose an ILP in Ireland
The proposed changes will bring Ireland’s ILPs offering in line with similar partnership vehicles in other jurisdictions and improve Ireland’s attraction as a location for establishing private equity, real assets and infrastructure funds.
The draft bill was published on the 20th of June 2019 and the proposed changes to the current legislation align ILPs with the requirements and terminology of the Alternative Investment Fund Managers Directive and other investment fund legislation.
Main Changes proposed by the Bill
Enable the establishment of umbrella structures with segregated liability between sub-funds. The use of an umbrella structure offers investors a choice of sub-funds with different types of investment strategies and investments plus operational and cost efficiencies.
A limited partner would be allowed to undertake certain activities like participate in advisory committees and vote on changes to the partnership agreement without losing their limited liability status.
Amendments to the limited partnership agreement
A limited partnership agreement would be able to be amended once all partners are notified in advance and with the majority of the limited partners (unless provided for in the partnership agreement) and the majority of the general partners agree.
The Bill also proposes that a partnership agreement may be amended if the depositary, as permitted under the partnership agreement, certifies that the amendment does not prejudice the interests of limited partners and is not a matter that requires unanimous partner approval.
Alternative Foreign Name
Enable the ILP to have an alternative foreign name which is helpful in oversee jurisdictions and highlights Ireland’s willingness to assist global asset managers establishing an Irish domiciled fund.
Withdrawals / Redemptions
The Bill aligns the capital contributions and return of capital provisions with other Irish regulated fund structures.
The reform proposed by the Irish government is part of their Action Plan to promote Ireland as a centre for international finance and support the continuous growth of the Irish funds industry. The Bill will now proceed through the legislative stages of the Irish parliament before it becomes law.
Deloitte will keep you updated on future developments.