What a difference a year makes – An update on Ireland's Investment Limited Partnership

Prior to the amendments to the Investment Limited Partnerships Act, 1994 taking effect in early 2021 only six funds had been established as Investment Limited Partnerships (ILPs). The limited uptake in the use of this structure was not a result of a lack of interest by asset managers in establishing funds in Ireland using a regulated partnership structure but rather the consequence of the shortcomings of the legislation.

Significant enhancements to the ILP regime were introduced in the form of the Investment Limited Partnerships (Amendment) Act 2020 (the 2020 Act). The aim of these amendments was to modernise the existing ILP legislation and further enhance Ireland’s suite of legal structures available for fund formation, in particular its offering for investment funds with real estate, infrastructure, loan origination, private equity, or debt strategies or those seeking to invest in other types of illiquid assets.

Since the effective date of these amendments, the number of ILPs authorised by the Central Bank has been steadily increasing. The number of ILPs listed on the Central Bank of Ireland (the Central Bank)'s authorised ILP register has over doubled in the last twelve months. There has also been an increase in enquiries as more managers consider using the ILP for their fund products. To date, managers have been using the ILP structure for private equity and debt strategies with sustainable or impact investment being a key focus for a number of these funds

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This article was first published in Edition 130 of the AIMA Journal in June 2022.


IRELAND
Eimear KeanePartnerT +353 1 470 6622eimear.keane@walkersglobal.com
Jill ShawSenior Knowledge LawyerT +353 1 863 8546jill.shaw@walkersglobal.com