This is a new vehicle designed to apply only to limited partnerships that are used as private investment funds. Existing partnerships that satisfy the conditions to qualify as a PFLP can apply to the Registrar of Limited Partnerships to be designated as a PFLP in order for the new regime to apply. Changes have been made in the following areas
- Partnership Capital – there is now no requirement in a PFLP for a Limited Partner to contribute any capital to the partnership at any time. This removes the need for the capital/loan split in documentation.
- Winding Up – If no General Partner a PFLP can be dissolved by a person appointed by the Limited Partners
- White List – this is perhaps the most controversial part of the new legislation and a “white list “ of activities is set out in the legislation. The list is not exhaustive but sets out actions which are deemed permissible and won’t result in a limited partner jeopardising their limited liability status
- Filing/Advertisement changes - reduction in information provided upon registration and no requirement for Gazette notices
It is yet to be seen to what extent the new vehicles will be used and/or the White List expanded but if you require any further information please do not hesitate to contact your usual team member at NCM.