8
www.matheson.com Page 1 The Irish Investment Limited Partnership: Partnering for Growth in Private Equity www.matheson.com
wwwmathesoncom Page 1
The Irish Investment Limited Partnership Partnering for
Growth in Private Equity
wwwmathesoncom
wwwmathesoncom Page 1
March2021
The highly flexible Irish qualifying investor alternative investment fund (ldquoQIAIFrdquo) regulatory framework best serves the needs of private equity venture capital and ldquoreal economyrdquo funds (such as property infrastructure and renewable energy funds) established in Ireland in the vast majority of cases
The QIAIF offers a trusted flexible and efficient route for fund managers to comply with the requirements of and to avail of the marketing benefits of the Alternative Investment Fund Managers Directive (ldquoAIFMDrdquo)
Legal vehicles through which a QIAIF can be structured include the investment limited partnership the Irish Collective Asset-management Vehicle (ICAV) investment company the unit trust and the common contractual fund
As limited partnerships are the most recognisable and widely used investment fund vehicles globally for private equity venture capital and ldquoreal economyrdquo funds this note provides an overview of a QIAIF established as an investment limited partnership pursuant to the Investment Limited Partnerships Act 1994 (ldquoILP Actrdquo) (recently amended by the enactment of the Investment Limited Partnerships (Amendment) Act 2020)
(Each of the QIAIF vehicles is considered more fully in our ldquoEstablishing a Qualifying Investor Alternative Investment Fund in Irelandrdquo Brochure and ldquoEstablishing a Private Equity Fund in Irelandrdquo Brochure)
InvestmentLimitedPartnerships
Investment Limited Partnerships (ldquoILPsrdquo) can be established under the ILP Act for investment in assets of any kind with the authorisation of the Central Bank of Ireland (ldquoCentral Bankrdquo) An ILP is created by contract between the general partner(s) and one or more investors who participate as limited partner(s) and will be subject to the AIF (Alternative Investment Funds) Rulebook issued by the Central Bank
The ILP is not incorporated and is not a separate legal entity An ILP does not therefore have power to enter contracts in its own name The general partner usually enters into contracts for the account of the ILP As with each of the structures referred to above a depositary is required to be appointed to safe-keep the assets of the ILP
There is no requirement under the ILP Act for an ILP to operate on the principle of risk spreading ILPs can be dedicated investment vehicles or offered on a private placement or public basis There is no limit on the number of limited partners permitted for an ILP
The general partners of an ILP are responsible for the management of its business and are liable for the debts and obligations of the ILP In general a limited partnerrsquos liability will not exceed the amount of its capital contribution or commitment to the ILP However a limited partner who participates in the conduct of the business of an ILP in its dealings with third parties may be liable on the insolvency of the ILP for debts incurred by the ILP in the period during which it participated in the conduct of its business as if
wwwmathesoncom Page 2
such limited partner had been a general partner during this period A limited partnerrsquos liability in this regard is limited to debts or obligations incurred by the ILP in favour of a third party who at the time that the debt or obligation was incurred reasonably believed based upon the conduct of the limited partner that the limited partner was a general partner The ILP Act specifies certain activities which will not be deemed to constitute participation by a limited partner in the business of an ILP
A typical ILP structure is illustrated below
General Partner (Ireland)
Limited Partners (Investors)Partnership Agreement
Investment Limited Partnership
Custodian (Ireland)
Global Sub-Custodian(any location)
Administrator (Ireland)
Investment Manager (any location)
AIFM
wwwmathesoncom Page 3
PrivateEquityQIAIFs
WhetherestablishedasanILPICAVinvestmentcompanyoraunittrustaprivateequityQIAIF
mayprovideforcarriedinterestandwaterfallmechanisms
mayhavebroadandflexibleinvestmentpoliciesandinadditiontoaninvestmentmanagermayutilisenon-discretionaryinvestmentadvisersandinvestmentcommittees
isnotsubjecttoanyborrowingorleveragelimits
mayprovideforpartlypaidunitsandcapitalcommitmentanddrawdownprovisions
maybeopen-endedhavelimitedliquidityorindeedbeclosed-ended
mustappointaninvestmentmanagerwhichisaregulatedentityapprovedbytheCentralBanktoactasaninvestmentmanagertoIrishfunds
mayprovideforinvestmentthroughwholly-ownedsubsidiariesand
mayincludeflexiblevaluationprovisionsincludingtheutilisationofIrishVentureCapitalAssociationandEuropeanVentureCapitalAssociationrules
TaxationofInvestmentLimitedPartnerships
Taxation of Fund and Investors
ILPsarenotsubjecttoIrishtaxonincomeorgainsderivedfromtheirinvestmentsorontheirnetassetvalueFurthermorethereisnowithholdingtaxondistributionsfromILPs
ForIrishtaxpurposesanILPislsquotaxtransparentrsquoThismeansthattheincomeandgainsaccruingtoitaretreatedasaccruingtoitspartnersinproportiontothevalueofthepartnershipinterestsbeneficiallyownedbythemasifsuchincomeandgainsdidnotpassthroughthehandsoftheILPDuetotheirtaxtransparentnatureILPsarenotrequiredtoobtaindeclarationsfromnon-Irishtaxresidentinvestors
Treaty Access
BecauseILPsaretaxtransparentunderIrishlawtheydonotbenefitfromtheIrishtaxtreatynetworkAsaresulttherelevanttaxtreatyislikelytobebetweenthesourcecountry(wheretheinvestmentislocated)andtherelevantpartnerrsquoscountry
Updates to the ILP
AsreferencedabovealargerangeofenhancementsareduetobeintroducedtotheILPbytheenactmentoftheInvestmentLimitedPartnership(Amendment)BillinitiatedafteraprocessofindustryconsultationTheseenhancementsareaimedatensuringthatIrelandhasalsquobest-inbreedrsquoregulatedILPpartnershipvehiclebuildingonIrelandrsquospositionasthedomicileforchoiceforassetmanagerswishingtoestablishEuropean investment funds Matheson partners through their involvement in a number of industryassociationcommitteeshavebeenactivelyengagedintherecentupdatestotheILP
The 1907 Limited Partnership
ItisalsopossibletoestablishaprivateequityfundundertheLimitedPartnershipAct1907(aldquo1907 LPrdquo)1907LPsarenotregulatedbytheCentralBankThetablesetoutintheappendixtothisnotecomparesthefeaturesoftheILPwiththe1907LP
wwwmathesoncom Page 4
Contacts
Please get in touch with your usual Asset Management and Investment Funds contact or any of the contacts listed in this publication should you require further information in relation to the material referred to in this briefing note
Full details of the Asset Management and Investment Funds Department together with further updates articles and briefing notes written by members of the Asset Management and Investment Funds team can be accessed at wwwmathesoncom
Tara DoylePartner
T +35312322221
E taradoylemathesoncom
Anne-Marie BohanPartner
T +35312322212
E anne-mariebohanmathesoncom
Philip LovegrovePartner
T +35312322538
E philiplovegrovemathesoncom
Michelle RidgePartner
T +35312322758
E michelleridgemathesoncom
Bronagh MaherProfessionalSupportLawyer
T +35312323757
E bronaghmahermathesoncom
Catriona ColePartner
T +35312322458
E catrionacolemathesoncom
Michael JacksonManagingPartner
T +35312322000
E michaeljacksonmathesoncom
Shay LydonPartner
T +35312322735
E shaylydonmathesoncom
Elizabeth GracePartner
T +35312322104
E elizabethgracemathesoncom
Barry OrsquoConnorPartner
T +35312322488
E barryoconnormathesoncom
Dualta CounihanPartner
T +35312322451
E dualtacounihanmathesoncom
Liam CollinsPartner
T +35312322195
E liamcollinsmathesoncom
Oisin McClenaghanPartner
T +35312322227
E oisinmcclenaghanmathesoncom
Donal OrsquoByrnePartner
T +35312322057
E donalorsquobyrnemathesoncom
wwwmathesoncom Page 5
ILP 1907 LP
Irish legal and regulatory regime
MustberegulatedandauthorisedbytheCentralBank
Not regulated by the Central BankRegistered with the Irish CompaniesRegistrationOffice(ldquoCROrdquo)
Legal StatusDoes not have separate legalpersonalityandmustactthroughitsgeneralpartner
Does not have separate legalpersonality and must act through itsgeneralpartner
Need to appoint a local Irish administrator
Yes No
Need to appoint an Irish depositary
Yes No
WhereaccesstotheAIFMDmarketingpassportisrequiredanauthorizedAIFManddepositarymustbeappointed
Need to appoint an alternative investment fund manager (ldquoAIFMrdquo)
An AIFM must be appointed whichmay also act as discretionaryinvestment manager (or if not aseparate investment manager mayneedtobeappointed)
Given the broad definition of an AIFunder AIFMD it would need to beconsidered whether a particular 1907PartnershipconstitutedanAIFInsuchcircumstancesanAIFMmayneedtobeappointed
Need to appoint an Irish general partner
AtleastonegeneralpartnermustbeIrish and suchgeneral partnermusthavetwoIrishresidentdirectors
No
Number of Limited Partners
Unlimited Limited to 19 (save where the 1907Partnership is for the provision ofinvestment and loan finance andancillaryfacilitiesstructureswherethelimitis50)Inthecaseofafundwhichhasahighernumberof investors twoormoreparallel1907Partnershipsmaybeestablished
Tax Status
The ILP is generally accepted as atax transparent entity This appliesfor income tax corporation taxand capital gains tax purposes Itmeans that thepartners themselvesare treated as directly holding theunderlying assets in thepartnershipfunds
The1907LPisgenerallyacceptedasatax transparent entity This applies forincometaxcorporationtaxandcapitalgains tax purposes It means that thepartners themselves are treated asdirectlyholdingtheunderlyingassetsinthepartnershipfunds
wwwmathesoncom Page 6
VAT Exemption on Management Fees
Yes No
Minimum capitalisation requirements
No No
Timing
4-6weeks Theentireprocessasitisnotsubjecttoregulatoryapprovalislikelytotake2-4weeksdependingonhowquicklythepartiesturnaroundthedocumentation
Disclosure obligations
CentralBankwillmaintainarecordofeachinvestmentlimitedpartnershipPartnership documents will notgenerallybepubliclyavailable
Identitiesofpartners (andanychangethereof)mustbefiledwithRegistrarofCompanies
Financial Statements
Audited financial statements mustbe filed annually with the CentralBankInthecaseofanILPwhichhasappointeda fullyauthorisedAIFMamarketing passport is available sothat partnership interests can bemarketed to professional investorsthroughouttheEuropeanUnion
Financial statements must be filedannually with the CRO (depending onthe size of the 1907 Partnership thefinancial statements may need to beaudited)
Marketing
In the case of an ILP which hasappointed a fully authorised AIFMa marketing passport is availableso thatpartnership interestscanbemarketed to professional investorsthroughouttheEuropeanUnion
Nomarketingpassportisavailableandpartnership interests may be sold ona private placement basis subject tolocal law requirements in the relevantjurisdictions (save where a fullyauthorised AIFM is appointed (alongwith a depositary) in which case themarketingpassportisavailable
Offering MemorandumThe ILP is required to prepare anofferingmemorandumandhave thisapprovedbytheCentralBank
There is no requirement on the 1907Partnership to prepare an offeringmemorandum
ILP 1907 LP
wwwmathesoncom Page 7
Thematerialisprovidedforgeneralinformationpurposesonlyanddoesnotpurporttocovereveryaspectofthethemesandsubjectmatterdiscussednorisit intendedtoprovideanddoesnotconstitutelegaloranyotheradviceonanyparticularmatterTheinformationinthisdocumentisprovidedsubjecttotheLegalTermsandLiabilityDisclaimercontainedontheMathesonwebsite
CopyrightcopyMatheson
DUBLIN
70SirJohnRogersonrsquosQuayDublin2Ireland
T+35312322000Edublinmathesoncom
CORK
CityGateMahonPointCorkIreland
T+353212409100Ecorkmathesoncom
LONDON
1LoveLaneLondonEC2N7JNEngland
T+442076145670Elondonmathesoncom
NEW YORK
200ParkAvenueNewYorkNY10166UnitedStates
T+16463546582Enewyorkmathesoncom
PALO ALTO
530LyttonAvenuePaloAltoCA94301UnitedStates
T+16506173351Epaloaltomathesoncom
SAN FRANCISCO
1562ndStreetSanFranciscoCA94105UnitedStates
T+16506173351Esfmathesoncom
wwwmathesoncom Page 1
March2021
The highly flexible Irish qualifying investor alternative investment fund (ldquoQIAIFrdquo) regulatory framework best serves the needs of private equity venture capital and ldquoreal economyrdquo funds (such as property infrastructure and renewable energy funds) established in Ireland in the vast majority of cases
The QIAIF offers a trusted flexible and efficient route for fund managers to comply with the requirements of and to avail of the marketing benefits of the Alternative Investment Fund Managers Directive (ldquoAIFMDrdquo)
Legal vehicles through which a QIAIF can be structured include the investment limited partnership the Irish Collective Asset-management Vehicle (ICAV) investment company the unit trust and the common contractual fund
As limited partnerships are the most recognisable and widely used investment fund vehicles globally for private equity venture capital and ldquoreal economyrdquo funds this note provides an overview of a QIAIF established as an investment limited partnership pursuant to the Investment Limited Partnerships Act 1994 (ldquoILP Actrdquo) (recently amended by the enactment of the Investment Limited Partnerships (Amendment) Act 2020)
(Each of the QIAIF vehicles is considered more fully in our ldquoEstablishing a Qualifying Investor Alternative Investment Fund in Irelandrdquo Brochure and ldquoEstablishing a Private Equity Fund in Irelandrdquo Brochure)
InvestmentLimitedPartnerships
Investment Limited Partnerships (ldquoILPsrdquo) can be established under the ILP Act for investment in assets of any kind with the authorisation of the Central Bank of Ireland (ldquoCentral Bankrdquo) An ILP is created by contract between the general partner(s) and one or more investors who participate as limited partner(s) and will be subject to the AIF (Alternative Investment Funds) Rulebook issued by the Central Bank
The ILP is not incorporated and is not a separate legal entity An ILP does not therefore have power to enter contracts in its own name The general partner usually enters into contracts for the account of the ILP As with each of the structures referred to above a depositary is required to be appointed to safe-keep the assets of the ILP
There is no requirement under the ILP Act for an ILP to operate on the principle of risk spreading ILPs can be dedicated investment vehicles or offered on a private placement or public basis There is no limit on the number of limited partners permitted for an ILP
The general partners of an ILP are responsible for the management of its business and are liable for the debts and obligations of the ILP In general a limited partnerrsquos liability will not exceed the amount of its capital contribution or commitment to the ILP However a limited partner who participates in the conduct of the business of an ILP in its dealings with third parties may be liable on the insolvency of the ILP for debts incurred by the ILP in the period during which it participated in the conduct of its business as if
wwwmathesoncom Page 2
such limited partner had been a general partner during this period A limited partnerrsquos liability in this regard is limited to debts or obligations incurred by the ILP in favour of a third party who at the time that the debt or obligation was incurred reasonably believed based upon the conduct of the limited partner that the limited partner was a general partner The ILP Act specifies certain activities which will not be deemed to constitute participation by a limited partner in the business of an ILP
A typical ILP structure is illustrated below
General Partner (Ireland)
Limited Partners (Investors)Partnership Agreement
Investment Limited Partnership
Custodian (Ireland)
Global Sub-Custodian(any location)
Administrator (Ireland)
Investment Manager (any location)
AIFM
wwwmathesoncom Page 3
PrivateEquityQIAIFs
WhetherestablishedasanILPICAVinvestmentcompanyoraunittrustaprivateequityQIAIF
mayprovideforcarriedinterestandwaterfallmechanisms
mayhavebroadandflexibleinvestmentpoliciesandinadditiontoaninvestmentmanagermayutilisenon-discretionaryinvestmentadvisersandinvestmentcommittees
isnotsubjecttoanyborrowingorleveragelimits
mayprovideforpartlypaidunitsandcapitalcommitmentanddrawdownprovisions
maybeopen-endedhavelimitedliquidityorindeedbeclosed-ended
mustappointaninvestmentmanagerwhichisaregulatedentityapprovedbytheCentralBanktoactasaninvestmentmanagertoIrishfunds
mayprovideforinvestmentthroughwholly-ownedsubsidiariesand
mayincludeflexiblevaluationprovisionsincludingtheutilisationofIrishVentureCapitalAssociationandEuropeanVentureCapitalAssociationrules
TaxationofInvestmentLimitedPartnerships
Taxation of Fund and Investors
ILPsarenotsubjecttoIrishtaxonincomeorgainsderivedfromtheirinvestmentsorontheirnetassetvalueFurthermorethereisnowithholdingtaxondistributionsfromILPs
ForIrishtaxpurposesanILPislsquotaxtransparentrsquoThismeansthattheincomeandgainsaccruingtoitaretreatedasaccruingtoitspartnersinproportiontothevalueofthepartnershipinterestsbeneficiallyownedbythemasifsuchincomeandgainsdidnotpassthroughthehandsoftheILPDuetotheirtaxtransparentnatureILPsarenotrequiredtoobtaindeclarationsfromnon-Irishtaxresidentinvestors
Treaty Access
BecauseILPsaretaxtransparentunderIrishlawtheydonotbenefitfromtheIrishtaxtreatynetworkAsaresulttherelevanttaxtreatyislikelytobebetweenthesourcecountry(wheretheinvestmentislocated)andtherelevantpartnerrsquoscountry
Updates to the ILP
AsreferencedabovealargerangeofenhancementsareduetobeintroducedtotheILPbytheenactmentoftheInvestmentLimitedPartnership(Amendment)BillinitiatedafteraprocessofindustryconsultationTheseenhancementsareaimedatensuringthatIrelandhasalsquobest-inbreedrsquoregulatedILPpartnershipvehiclebuildingonIrelandrsquospositionasthedomicileforchoiceforassetmanagerswishingtoestablishEuropean investment funds Matheson partners through their involvement in a number of industryassociationcommitteeshavebeenactivelyengagedintherecentupdatestotheILP
The 1907 Limited Partnership
ItisalsopossibletoestablishaprivateequityfundundertheLimitedPartnershipAct1907(aldquo1907 LPrdquo)1907LPsarenotregulatedbytheCentralBankThetablesetoutintheappendixtothisnotecomparesthefeaturesoftheILPwiththe1907LP
wwwmathesoncom Page 4
Contacts
Please get in touch with your usual Asset Management and Investment Funds contact or any of the contacts listed in this publication should you require further information in relation to the material referred to in this briefing note
Full details of the Asset Management and Investment Funds Department together with further updates articles and briefing notes written by members of the Asset Management and Investment Funds team can be accessed at wwwmathesoncom
Tara DoylePartner
T +35312322221
E taradoylemathesoncom
Anne-Marie BohanPartner
T +35312322212
E anne-mariebohanmathesoncom
Philip LovegrovePartner
T +35312322538
E philiplovegrovemathesoncom
Michelle RidgePartner
T +35312322758
E michelleridgemathesoncom
Bronagh MaherProfessionalSupportLawyer
T +35312323757
E bronaghmahermathesoncom
Catriona ColePartner
T +35312322458
E catrionacolemathesoncom
Michael JacksonManagingPartner
T +35312322000
E michaeljacksonmathesoncom
Shay LydonPartner
T +35312322735
E shaylydonmathesoncom
Elizabeth GracePartner
T +35312322104
E elizabethgracemathesoncom
Barry OrsquoConnorPartner
T +35312322488
E barryoconnormathesoncom
Dualta CounihanPartner
T +35312322451
E dualtacounihanmathesoncom
Liam CollinsPartner
T +35312322195
E liamcollinsmathesoncom
Oisin McClenaghanPartner
T +35312322227
E oisinmcclenaghanmathesoncom
Donal OrsquoByrnePartner
T +35312322057
E donalorsquobyrnemathesoncom
wwwmathesoncom Page 5
ILP 1907 LP
Irish legal and regulatory regime
MustberegulatedandauthorisedbytheCentralBank
Not regulated by the Central BankRegistered with the Irish CompaniesRegistrationOffice(ldquoCROrdquo)
Legal StatusDoes not have separate legalpersonalityandmustactthroughitsgeneralpartner
Does not have separate legalpersonality and must act through itsgeneralpartner
Need to appoint a local Irish administrator
Yes No
Need to appoint an Irish depositary
Yes No
WhereaccesstotheAIFMDmarketingpassportisrequiredanauthorizedAIFManddepositarymustbeappointed
Need to appoint an alternative investment fund manager (ldquoAIFMrdquo)
An AIFM must be appointed whichmay also act as discretionaryinvestment manager (or if not aseparate investment manager mayneedtobeappointed)
Given the broad definition of an AIFunder AIFMD it would need to beconsidered whether a particular 1907PartnershipconstitutedanAIFInsuchcircumstancesanAIFMmayneedtobeappointed
Need to appoint an Irish general partner
AtleastonegeneralpartnermustbeIrish and suchgeneral partnermusthavetwoIrishresidentdirectors
No
Number of Limited Partners
Unlimited Limited to 19 (save where the 1907Partnership is for the provision ofinvestment and loan finance andancillaryfacilitiesstructureswherethelimitis50)Inthecaseofafundwhichhasahighernumberof investors twoormoreparallel1907Partnershipsmaybeestablished
Tax Status
The ILP is generally accepted as atax transparent entity This appliesfor income tax corporation taxand capital gains tax purposes Itmeans that thepartners themselvesare treated as directly holding theunderlying assets in thepartnershipfunds
The1907LPisgenerallyacceptedasatax transparent entity This applies forincometaxcorporationtaxandcapitalgains tax purposes It means that thepartners themselves are treated asdirectlyholdingtheunderlyingassetsinthepartnershipfunds
wwwmathesoncom Page 6
VAT Exemption on Management Fees
Yes No
Minimum capitalisation requirements
No No
Timing
4-6weeks Theentireprocessasitisnotsubjecttoregulatoryapprovalislikelytotake2-4weeksdependingonhowquicklythepartiesturnaroundthedocumentation
Disclosure obligations
CentralBankwillmaintainarecordofeachinvestmentlimitedpartnershipPartnership documents will notgenerallybepubliclyavailable
Identitiesofpartners (andanychangethereof)mustbefiledwithRegistrarofCompanies
Financial Statements
Audited financial statements mustbe filed annually with the CentralBankInthecaseofanILPwhichhasappointeda fullyauthorisedAIFMamarketing passport is available sothat partnership interests can bemarketed to professional investorsthroughouttheEuropeanUnion
Financial statements must be filedannually with the CRO (depending onthe size of the 1907 Partnership thefinancial statements may need to beaudited)
Marketing
In the case of an ILP which hasappointed a fully authorised AIFMa marketing passport is availableso thatpartnership interestscanbemarketed to professional investorsthroughouttheEuropeanUnion
Nomarketingpassportisavailableandpartnership interests may be sold ona private placement basis subject tolocal law requirements in the relevantjurisdictions (save where a fullyauthorised AIFM is appointed (alongwith a depositary) in which case themarketingpassportisavailable
Offering MemorandumThe ILP is required to prepare anofferingmemorandumandhave thisapprovedbytheCentralBank
There is no requirement on the 1907Partnership to prepare an offeringmemorandum
ILP 1907 LP
wwwmathesoncom Page 7
Thematerialisprovidedforgeneralinformationpurposesonlyanddoesnotpurporttocovereveryaspectofthethemesandsubjectmatterdiscussednorisit intendedtoprovideanddoesnotconstitutelegaloranyotheradviceonanyparticularmatterTheinformationinthisdocumentisprovidedsubjecttotheLegalTermsandLiabilityDisclaimercontainedontheMathesonwebsite
CopyrightcopyMatheson
DUBLIN
70SirJohnRogersonrsquosQuayDublin2Ireland
T+35312322000Edublinmathesoncom
CORK
CityGateMahonPointCorkIreland
T+353212409100Ecorkmathesoncom
LONDON
1LoveLaneLondonEC2N7JNEngland
T+442076145670Elondonmathesoncom
NEW YORK
200ParkAvenueNewYorkNY10166UnitedStates
T+16463546582Enewyorkmathesoncom
PALO ALTO
530LyttonAvenuePaloAltoCA94301UnitedStates
T+16506173351Epaloaltomathesoncom
SAN FRANCISCO
1562ndStreetSanFranciscoCA94105UnitedStates
T+16506173351Esfmathesoncom
wwwmathesoncom Page 2
such limited partner had been a general partner during this period A limited partnerrsquos liability in this regard is limited to debts or obligations incurred by the ILP in favour of a third party who at the time that the debt or obligation was incurred reasonably believed based upon the conduct of the limited partner that the limited partner was a general partner The ILP Act specifies certain activities which will not be deemed to constitute participation by a limited partner in the business of an ILP
A typical ILP structure is illustrated below
General Partner (Ireland)
Limited Partners (Investors)Partnership Agreement
Investment Limited Partnership
Custodian (Ireland)
Global Sub-Custodian(any location)
Administrator (Ireland)
Investment Manager (any location)
AIFM
wwwmathesoncom Page 3
PrivateEquityQIAIFs
WhetherestablishedasanILPICAVinvestmentcompanyoraunittrustaprivateequityQIAIF
mayprovideforcarriedinterestandwaterfallmechanisms
mayhavebroadandflexibleinvestmentpoliciesandinadditiontoaninvestmentmanagermayutilisenon-discretionaryinvestmentadvisersandinvestmentcommittees
isnotsubjecttoanyborrowingorleveragelimits
mayprovideforpartlypaidunitsandcapitalcommitmentanddrawdownprovisions
maybeopen-endedhavelimitedliquidityorindeedbeclosed-ended
mustappointaninvestmentmanagerwhichisaregulatedentityapprovedbytheCentralBanktoactasaninvestmentmanagertoIrishfunds
mayprovideforinvestmentthroughwholly-ownedsubsidiariesand
mayincludeflexiblevaluationprovisionsincludingtheutilisationofIrishVentureCapitalAssociationandEuropeanVentureCapitalAssociationrules
TaxationofInvestmentLimitedPartnerships
Taxation of Fund and Investors
ILPsarenotsubjecttoIrishtaxonincomeorgainsderivedfromtheirinvestmentsorontheirnetassetvalueFurthermorethereisnowithholdingtaxondistributionsfromILPs
ForIrishtaxpurposesanILPislsquotaxtransparentrsquoThismeansthattheincomeandgainsaccruingtoitaretreatedasaccruingtoitspartnersinproportiontothevalueofthepartnershipinterestsbeneficiallyownedbythemasifsuchincomeandgainsdidnotpassthroughthehandsoftheILPDuetotheirtaxtransparentnatureILPsarenotrequiredtoobtaindeclarationsfromnon-Irishtaxresidentinvestors
Treaty Access
BecauseILPsaretaxtransparentunderIrishlawtheydonotbenefitfromtheIrishtaxtreatynetworkAsaresulttherelevanttaxtreatyislikelytobebetweenthesourcecountry(wheretheinvestmentislocated)andtherelevantpartnerrsquoscountry
Updates to the ILP
AsreferencedabovealargerangeofenhancementsareduetobeintroducedtotheILPbytheenactmentoftheInvestmentLimitedPartnership(Amendment)BillinitiatedafteraprocessofindustryconsultationTheseenhancementsareaimedatensuringthatIrelandhasalsquobest-inbreedrsquoregulatedILPpartnershipvehiclebuildingonIrelandrsquospositionasthedomicileforchoiceforassetmanagerswishingtoestablishEuropean investment funds Matheson partners through their involvement in a number of industryassociationcommitteeshavebeenactivelyengagedintherecentupdatestotheILP
The 1907 Limited Partnership
ItisalsopossibletoestablishaprivateequityfundundertheLimitedPartnershipAct1907(aldquo1907 LPrdquo)1907LPsarenotregulatedbytheCentralBankThetablesetoutintheappendixtothisnotecomparesthefeaturesoftheILPwiththe1907LP
wwwmathesoncom Page 4
Contacts
Please get in touch with your usual Asset Management and Investment Funds contact or any of the contacts listed in this publication should you require further information in relation to the material referred to in this briefing note
Full details of the Asset Management and Investment Funds Department together with further updates articles and briefing notes written by members of the Asset Management and Investment Funds team can be accessed at wwwmathesoncom
Tara DoylePartner
T +35312322221
E taradoylemathesoncom
Anne-Marie BohanPartner
T +35312322212
E anne-mariebohanmathesoncom
Philip LovegrovePartner
T +35312322538
E philiplovegrovemathesoncom
Michelle RidgePartner
T +35312322758
E michelleridgemathesoncom
Bronagh MaherProfessionalSupportLawyer
T +35312323757
E bronaghmahermathesoncom
Catriona ColePartner
T +35312322458
E catrionacolemathesoncom
Michael JacksonManagingPartner
T +35312322000
E michaeljacksonmathesoncom
Shay LydonPartner
T +35312322735
E shaylydonmathesoncom
Elizabeth GracePartner
T +35312322104
E elizabethgracemathesoncom
Barry OrsquoConnorPartner
T +35312322488
E barryoconnormathesoncom
Dualta CounihanPartner
T +35312322451
E dualtacounihanmathesoncom
Liam CollinsPartner
T +35312322195
E liamcollinsmathesoncom
Oisin McClenaghanPartner
T +35312322227
E oisinmcclenaghanmathesoncom
Donal OrsquoByrnePartner
T +35312322057
E donalorsquobyrnemathesoncom
wwwmathesoncom Page 5
ILP 1907 LP
Irish legal and regulatory regime
MustberegulatedandauthorisedbytheCentralBank
Not regulated by the Central BankRegistered with the Irish CompaniesRegistrationOffice(ldquoCROrdquo)
Legal StatusDoes not have separate legalpersonalityandmustactthroughitsgeneralpartner
Does not have separate legalpersonality and must act through itsgeneralpartner
Need to appoint a local Irish administrator
Yes No
Need to appoint an Irish depositary
Yes No
WhereaccesstotheAIFMDmarketingpassportisrequiredanauthorizedAIFManddepositarymustbeappointed
Need to appoint an alternative investment fund manager (ldquoAIFMrdquo)
An AIFM must be appointed whichmay also act as discretionaryinvestment manager (or if not aseparate investment manager mayneedtobeappointed)
Given the broad definition of an AIFunder AIFMD it would need to beconsidered whether a particular 1907PartnershipconstitutedanAIFInsuchcircumstancesanAIFMmayneedtobeappointed
Need to appoint an Irish general partner
AtleastonegeneralpartnermustbeIrish and suchgeneral partnermusthavetwoIrishresidentdirectors
No
Number of Limited Partners
Unlimited Limited to 19 (save where the 1907Partnership is for the provision ofinvestment and loan finance andancillaryfacilitiesstructureswherethelimitis50)Inthecaseofafundwhichhasahighernumberof investors twoormoreparallel1907Partnershipsmaybeestablished
Tax Status
The ILP is generally accepted as atax transparent entity This appliesfor income tax corporation taxand capital gains tax purposes Itmeans that thepartners themselvesare treated as directly holding theunderlying assets in thepartnershipfunds
The1907LPisgenerallyacceptedasatax transparent entity This applies forincometaxcorporationtaxandcapitalgains tax purposes It means that thepartners themselves are treated asdirectlyholdingtheunderlyingassetsinthepartnershipfunds
wwwmathesoncom Page 6
VAT Exemption on Management Fees
Yes No
Minimum capitalisation requirements
No No
Timing
4-6weeks Theentireprocessasitisnotsubjecttoregulatoryapprovalislikelytotake2-4weeksdependingonhowquicklythepartiesturnaroundthedocumentation
Disclosure obligations
CentralBankwillmaintainarecordofeachinvestmentlimitedpartnershipPartnership documents will notgenerallybepubliclyavailable
Identitiesofpartners (andanychangethereof)mustbefiledwithRegistrarofCompanies
Financial Statements
Audited financial statements mustbe filed annually with the CentralBankInthecaseofanILPwhichhasappointeda fullyauthorisedAIFMamarketing passport is available sothat partnership interests can bemarketed to professional investorsthroughouttheEuropeanUnion
Financial statements must be filedannually with the CRO (depending onthe size of the 1907 Partnership thefinancial statements may need to beaudited)
Marketing
In the case of an ILP which hasappointed a fully authorised AIFMa marketing passport is availableso thatpartnership interestscanbemarketed to professional investorsthroughouttheEuropeanUnion
Nomarketingpassportisavailableandpartnership interests may be sold ona private placement basis subject tolocal law requirements in the relevantjurisdictions (save where a fullyauthorised AIFM is appointed (alongwith a depositary) in which case themarketingpassportisavailable
Offering MemorandumThe ILP is required to prepare anofferingmemorandumandhave thisapprovedbytheCentralBank
There is no requirement on the 1907Partnership to prepare an offeringmemorandum
ILP 1907 LP
wwwmathesoncom Page 7
Thematerialisprovidedforgeneralinformationpurposesonlyanddoesnotpurporttocovereveryaspectofthethemesandsubjectmatterdiscussednorisit intendedtoprovideanddoesnotconstitutelegaloranyotheradviceonanyparticularmatterTheinformationinthisdocumentisprovidedsubjecttotheLegalTermsandLiabilityDisclaimercontainedontheMathesonwebsite
CopyrightcopyMatheson
DUBLIN
70SirJohnRogersonrsquosQuayDublin2Ireland
T+35312322000Edublinmathesoncom
CORK
CityGateMahonPointCorkIreland
T+353212409100Ecorkmathesoncom
LONDON
1LoveLaneLondonEC2N7JNEngland
T+442076145670Elondonmathesoncom
NEW YORK
200ParkAvenueNewYorkNY10166UnitedStates
T+16463546582Enewyorkmathesoncom
PALO ALTO
530LyttonAvenuePaloAltoCA94301UnitedStates
T+16506173351Epaloaltomathesoncom
SAN FRANCISCO
1562ndStreetSanFranciscoCA94105UnitedStates
T+16506173351Esfmathesoncom
wwwmathesoncom Page 3
PrivateEquityQIAIFs
WhetherestablishedasanILPICAVinvestmentcompanyoraunittrustaprivateequityQIAIF
mayprovideforcarriedinterestandwaterfallmechanisms
mayhavebroadandflexibleinvestmentpoliciesandinadditiontoaninvestmentmanagermayutilisenon-discretionaryinvestmentadvisersandinvestmentcommittees
isnotsubjecttoanyborrowingorleveragelimits
mayprovideforpartlypaidunitsandcapitalcommitmentanddrawdownprovisions
maybeopen-endedhavelimitedliquidityorindeedbeclosed-ended
mustappointaninvestmentmanagerwhichisaregulatedentityapprovedbytheCentralBanktoactasaninvestmentmanagertoIrishfunds
mayprovideforinvestmentthroughwholly-ownedsubsidiariesand
mayincludeflexiblevaluationprovisionsincludingtheutilisationofIrishVentureCapitalAssociationandEuropeanVentureCapitalAssociationrules
TaxationofInvestmentLimitedPartnerships
Taxation of Fund and Investors
ILPsarenotsubjecttoIrishtaxonincomeorgainsderivedfromtheirinvestmentsorontheirnetassetvalueFurthermorethereisnowithholdingtaxondistributionsfromILPs
ForIrishtaxpurposesanILPislsquotaxtransparentrsquoThismeansthattheincomeandgainsaccruingtoitaretreatedasaccruingtoitspartnersinproportiontothevalueofthepartnershipinterestsbeneficiallyownedbythemasifsuchincomeandgainsdidnotpassthroughthehandsoftheILPDuetotheirtaxtransparentnatureILPsarenotrequiredtoobtaindeclarationsfromnon-Irishtaxresidentinvestors
Treaty Access
BecauseILPsaretaxtransparentunderIrishlawtheydonotbenefitfromtheIrishtaxtreatynetworkAsaresulttherelevanttaxtreatyislikelytobebetweenthesourcecountry(wheretheinvestmentislocated)andtherelevantpartnerrsquoscountry
Updates to the ILP
AsreferencedabovealargerangeofenhancementsareduetobeintroducedtotheILPbytheenactmentoftheInvestmentLimitedPartnership(Amendment)BillinitiatedafteraprocessofindustryconsultationTheseenhancementsareaimedatensuringthatIrelandhasalsquobest-inbreedrsquoregulatedILPpartnershipvehiclebuildingonIrelandrsquospositionasthedomicileforchoiceforassetmanagerswishingtoestablishEuropean investment funds Matheson partners through their involvement in a number of industryassociationcommitteeshavebeenactivelyengagedintherecentupdatestotheILP
The 1907 Limited Partnership
ItisalsopossibletoestablishaprivateequityfundundertheLimitedPartnershipAct1907(aldquo1907 LPrdquo)1907LPsarenotregulatedbytheCentralBankThetablesetoutintheappendixtothisnotecomparesthefeaturesoftheILPwiththe1907LP
wwwmathesoncom Page 4
Contacts
Please get in touch with your usual Asset Management and Investment Funds contact or any of the contacts listed in this publication should you require further information in relation to the material referred to in this briefing note
Full details of the Asset Management and Investment Funds Department together with further updates articles and briefing notes written by members of the Asset Management and Investment Funds team can be accessed at wwwmathesoncom
Tara DoylePartner
T +35312322221
E taradoylemathesoncom
Anne-Marie BohanPartner
T +35312322212
E anne-mariebohanmathesoncom
Philip LovegrovePartner
T +35312322538
E philiplovegrovemathesoncom
Michelle RidgePartner
T +35312322758
E michelleridgemathesoncom
Bronagh MaherProfessionalSupportLawyer
T +35312323757
E bronaghmahermathesoncom
Catriona ColePartner
T +35312322458
E catrionacolemathesoncom
Michael JacksonManagingPartner
T +35312322000
E michaeljacksonmathesoncom
Shay LydonPartner
T +35312322735
E shaylydonmathesoncom
Elizabeth GracePartner
T +35312322104
E elizabethgracemathesoncom
Barry OrsquoConnorPartner
T +35312322488
E barryoconnormathesoncom
Dualta CounihanPartner
T +35312322451
E dualtacounihanmathesoncom
Liam CollinsPartner
T +35312322195
E liamcollinsmathesoncom
Oisin McClenaghanPartner
T +35312322227
E oisinmcclenaghanmathesoncom
Donal OrsquoByrnePartner
T +35312322057
E donalorsquobyrnemathesoncom
wwwmathesoncom Page 5
ILP 1907 LP
Irish legal and regulatory regime
MustberegulatedandauthorisedbytheCentralBank
Not regulated by the Central BankRegistered with the Irish CompaniesRegistrationOffice(ldquoCROrdquo)
Legal StatusDoes not have separate legalpersonalityandmustactthroughitsgeneralpartner
Does not have separate legalpersonality and must act through itsgeneralpartner
Need to appoint a local Irish administrator
Yes No
Need to appoint an Irish depositary
Yes No
WhereaccesstotheAIFMDmarketingpassportisrequiredanauthorizedAIFManddepositarymustbeappointed
Need to appoint an alternative investment fund manager (ldquoAIFMrdquo)
An AIFM must be appointed whichmay also act as discretionaryinvestment manager (or if not aseparate investment manager mayneedtobeappointed)
Given the broad definition of an AIFunder AIFMD it would need to beconsidered whether a particular 1907PartnershipconstitutedanAIFInsuchcircumstancesanAIFMmayneedtobeappointed
Need to appoint an Irish general partner
AtleastonegeneralpartnermustbeIrish and suchgeneral partnermusthavetwoIrishresidentdirectors
No
Number of Limited Partners
Unlimited Limited to 19 (save where the 1907Partnership is for the provision ofinvestment and loan finance andancillaryfacilitiesstructureswherethelimitis50)Inthecaseofafundwhichhasahighernumberof investors twoormoreparallel1907Partnershipsmaybeestablished
Tax Status
The ILP is generally accepted as atax transparent entity This appliesfor income tax corporation taxand capital gains tax purposes Itmeans that thepartners themselvesare treated as directly holding theunderlying assets in thepartnershipfunds
The1907LPisgenerallyacceptedasatax transparent entity This applies forincometaxcorporationtaxandcapitalgains tax purposes It means that thepartners themselves are treated asdirectlyholdingtheunderlyingassetsinthepartnershipfunds
wwwmathesoncom Page 6
VAT Exemption on Management Fees
Yes No
Minimum capitalisation requirements
No No
Timing
4-6weeks Theentireprocessasitisnotsubjecttoregulatoryapprovalislikelytotake2-4weeksdependingonhowquicklythepartiesturnaroundthedocumentation
Disclosure obligations
CentralBankwillmaintainarecordofeachinvestmentlimitedpartnershipPartnership documents will notgenerallybepubliclyavailable
Identitiesofpartners (andanychangethereof)mustbefiledwithRegistrarofCompanies
Financial Statements
Audited financial statements mustbe filed annually with the CentralBankInthecaseofanILPwhichhasappointeda fullyauthorisedAIFMamarketing passport is available sothat partnership interests can bemarketed to professional investorsthroughouttheEuropeanUnion
Financial statements must be filedannually with the CRO (depending onthe size of the 1907 Partnership thefinancial statements may need to beaudited)
Marketing
In the case of an ILP which hasappointed a fully authorised AIFMa marketing passport is availableso thatpartnership interestscanbemarketed to professional investorsthroughouttheEuropeanUnion
Nomarketingpassportisavailableandpartnership interests may be sold ona private placement basis subject tolocal law requirements in the relevantjurisdictions (save where a fullyauthorised AIFM is appointed (alongwith a depositary) in which case themarketingpassportisavailable
Offering MemorandumThe ILP is required to prepare anofferingmemorandumandhave thisapprovedbytheCentralBank
There is no requirement on the 1907Partnership to prepare an offeringmemorandum
ILP 1907 LP
wwwmathesoncom Page 7
Thematerialisprovidedforgeneralinformationpurposesonlyanddoesnotpurporttocovereveryaspectofthethemesandsubjectmatterdiscussednorisit intendedtoprovideanddoesnotconstitutelegaloranyotheradviceonanyparticularmatterTheinformationinthisdocumentisprovidedsubjecttotheLegalTermsandLiabilityDisclaimercontainedontheMathesonwebsite
CopyrightcopyMatheson
DUBLIN
70SirJohnRogersonrsquosQuayDublin2Ireland
T+35312322000Edublinmathesoncom
CORK
CityGateMahonPointCorkIreland
T+353212409100Ecorkmathesoncom
LONDON
1LoveLaneLondonEC2N7JNEngland
T+442076145670Elondonmathesoncom
NEW YORK
200ParkAvenueNewYorkNY10166UnitedStates
T+16463546582Enewyorkmathesoncom
PALO ALTO
530LyttonAvenuePaloAltoCA94301UnitedStates
T+16506173351Epaloaltomathesoncom
SAN FRANCISCO
1562ndStreetSanFranciscoCA94105UnitedStates
T+16506173351Esfmathesoncom
wwwmathesoncom Page 4
Contacts
Please get in touch with your usual Asset Management and Investment Funds contact or any of the contacts listed in this publication should you require further information in relation to the material referred to in this briefing note
Full details of the Asset Management and Investment Funds Department together with further updates articles and briefing notes written by members of the Asset Management and Investment Funds team can be accessed at wwwmathesoncom
Tara DoylePartner
T +35312322221
E taradoylemathesoncom
Anne-Marie BohanPartner
T +35312322212
E anne-mariebohanmathesoncom
Philip LovegrovePartner
T +35312322538
E philiplovegrovemathesoncom
Michelle RidgePartner
T +35312322758
E michelleridgemathesoncom
Bronagh MaherProfessionalSupportLawyer
T +35312323757
E bronaghmahermathesoncom
Catriona ColePartner
T +35312322458
E catrionacolemathesoncom
Michael JacksonManagingPartner
T +35312322000
E michaeljacksonmathesoncom
Shay LydonPartner
T +35312322735
E shaylydonmathesoncom
Elizabeth GracePartner
T +35312322104
E elizabethgracemathesoncom
Barry OrsquoConnorPartner
T +35312322488
E barryoconnormathesoncom
Dualta CounihanPartner
T +35312322451
E dualtacounihanmathesoncom
Liam CollinsPartner
T +35312322195
E liamcollinsmathesoncom
Oisin McClenaghanPartner
T +35312322227
E oisinmcclenaghanmathesoncom
Donal OrsquoByrnePartner
T +35312322057
E donalorsquobyrnemathesoncom
wwwmathesoncom Page 5
ILP 1907 LP
Irish legal and regulatory regime
MustberegulatedandauthorisedbytheCentralBank
Not regulated by the Central BankRegistered with the Irish CompaniesRegistrationOffice(ldquoCROrdquo)
Legal StatusDoes not have separate legalpersonalityandmustactthroughitsgeneralpartner
Does not have separate legalpersonality and must act through itsgeneralpartner
Need to appoint a local Irish administrator
Yes No
Need to appoint an Irish depositary
Yes No
WhereaccesstotheAIFMDmarketingpassportisrequiredanauthorizedAIFManddepositarymustbeappointed
Need to appoint an alternative investment fund manager (ldquoAIFMrdquo)
An AIFM must be appointed whichmay also act as discretionaryinvestment manager (or if not aseparate investment manager mayneedtobeappointed)
Given the broad definition of an AIFunder AIFMD it would need to beconsidered whether a particular 1907PartnershipconstitutedanAIFInsuchcircumstancesanAIFMmayneedtobeappointed
Need to appoint an Irish general partner
AtleastonegeneralpartnermustbeIrish and suchgeneral partnermusthavetwoIrishresidentdirectors
No
Number of Limited Partners
Unlimited Limited to 19 (save where the 1907Partnership is for the provision ofinvestment and loan finance andancillaryfacilitiesstructureswherethelimitis50)Inthecaseofafundwhichhasahighernumberof investors twoormoreparallel1907Partnershipsmaybeestablished
Tax Status
The ILP is generally accepted as atax transparent entity This appliesfor income tax corporation taxand capital gains tax purposes Itmeans that thepartners themselvesare treated as directly holding theunderlying assets in thepartnershipfunds
The1907LPisgenerallyacceptedasatax transparent entity This applies forincometaxcorporationtaxandcapitalgains tax purposes It means that thepartners themselves are treated asdirectlyholdingtheunderlyingassetsinthepartnershipfunds
wwwmathesoncom Page 6
VAT Exemption on Management Fees
Yes No
Minimum capitalisation requirements
No No
Timing
4-6weeks Theentireprocessasitisnotsubjecttoregulatoryapprovalislikelytotake2-4weeksdependingonhowquicklythepartiesturnaroundthedocumentation
Disclosure obligations
CentralBankwillmaintainarecordofeachinvestmentlimitedpartnershipPartnership documents will notgenerallybepubliclyavailable
Identitiesofpartners (andanychangethereof)mustbefiledwithRegistrarofCompanies
Financial Statements
Audited financial statements mustbe filed annually with the CentralBankInthecaseofanILPwhichhasappointeda fullyauthorisedAIFMamarketing passport is available sothat partnership interests can bemarketed to professional investorsthroughouttheEuropeanUnion
Financial statements must be filedannually with the CRO (depending onthe size of the 1907 Partnership thefinancial statements may need to beaudited)
Marketing
In the case of an ILP which hasappointed a fully authorised AIFMa marketing passport is availableso thatpartnership interestscanbemarketed to professional investorsthroughouttheEuropeanUnion
Nomarketingpassportisavailableandpartnership interests may be sold ona private placement basis subject tolocal law requirements in the relevantjurisdictions (save where a fullyauthorised AIFM is appointed (alongwith a depositary) in which case themarketingpassportisavailable
Offering MemorandumThe ILP is required to prepare anofferingmemorandumandhave thisapprovedbytheCentralBank
There is no requirement on the 1907Partnership to prepare an offeringmemorandum
ILP 1907 LP
wwwmathesoncom Page 7
Thematerialisprovidedforgeneralinformationpurposesonlyanddoesnotpurporttocovereveryaspectofthethemesandsubjectmatterdiscussednorisit intendedtoprovideanddoesnotconstitutelegaloranyotheradviceonanyparticularmatterTheinformationinthisdocumentisprovidedsubjecttotheLegalTermsandLiabilityDisclaimercontainedontheMathesonwebsite
CopyrightcopyMatheson
DUBLIN
70SirJohnRogersonrsquosQuayDublin2Ireland
T+35312322000Edublinmathesoncom
CORK
CityGateMahonPointCorkIreland
T+353212409100Ecorkmathesoncom
LONDON
1LoveLaneLondonEC2N7JNEngland
T+442076145670Elondonmathesoncom
NEW YORK
200ParkAvenueNewYorkNY10166UnitedStates
T+16463546582Enewyorkmathesoncom
PALO ALTO
530LyttonAvenuePaloAltoCA94301UnitedStates
T+16506173351Epaloaltomathesoncom
SAN FRANCISCO
1562ndStreetSanFranciscoCA94105UnitedStates
T+16506173351Esfmathesoncom
wwwmathesoncom Page 5
ILP 1907 LP
Irish legal and regulatory regime
MustberegulatedandauthorisedbytheCentralBank
Not regulated by the Central BankRegistered with the Irish CompaniesRegistrationOffice(ldquoCROrdquo)
Legal StatusDoes not have separate legalpersonalityandmustactthroughitsgeneralpartner
Does not have separate legalpersonality and must act through itsgeneralpartner
Need to appoint a local Irish administrator
Yes No
Need to appoint an Irish depositary
Yes No
WhereaccesstotheAIFMDmarketingpassportisrequiredanauthorizedAIFManddepositarymustbeappointed
Need to appoint an alternative investment fund manager (ldquoAIFMrdquo)
An AIFM must be appointed whichmay also act as discretionaryinvestment manager (or if not aseparate investment manager mayneedtobeappointed)
Given the broad definition of an AIFunder AIFMD it would need to beconsidered whether a particular 1907PartnershipconstitutedanAIFInsuchcircumstancesanAIFMmayneedtobeappointed
Need to appoint an Irish general partner
AtleastonegeneralpartnermustbeIrish and suchgeneral partnermusthavetwoIrishresidentdirectors
No
Number of Limited Partners
Unlimited Limited to 19 (save where the 1907Partnership is for the provision ofinvestment and loan finance andancillaryfacilitiesstructureswherethelimitis50)Inthecaseofafundwhichhasahighernumberof investors twoormoreparallel1907Partnershipsmaybeestablished
Tax Status
The ILP is generally accepted as atax transparent entity This appliesfor income tax corporation taxand capital gains tax purposes Itmeans that thepartners themselvesare treated as directly holding theunderlying assets in thepartnershipfunds
The1907LPisgenerallyacceptedasatax transparent entity This applies forincometaxcorporationtaxandcapitalgains tax purposes It means that thepartners themselves are treated asdirectlyholdingtheunderlyingassetsinthepartnershipfunds
wwwmathesoncom Page 6
VAT Exemption on Management Fees
Yes No
Minimum capitalisation requirements
No No
Timing
4-6weeks Theentireprocessasitisnotsubjecttoregulatoryapprovalislikelytotake2-4weeksdependingonhowquicklythepartiesturnaroundthedocumentation
Disclosure obligations
CentralBankwillmaintainarecordofeachinvestmentlimitedpartnershipPartnership documents will notgenerallybepubliclyavailable
Identitiesofpartners (andanychangethereof)mustbefiledwithRegistrarofCompanies
Financial Statements
Audited financial statements mustbe filed annually with the CentralBankInthecaseofanILPwhichhasappointeda fullyauthorisedAIFMamarketing passport is available sothat partnership interests can bemarketed to professional investorsthroughouttheEuropeanUnion
Financial statements must be filedannually with the CRO (depending onthe size of the 1907 Partnership thefinancial statements may need to beaudited)
Marketing
In the case of an ILP which hasappointed a fully authorised AIFMa marketing passport is availableso thatpartnership interestscanbemarketed to professional investorsthroughouttheEuropeanUnion
Nomarketingpassportisavailableandpartnership interests may be sold ona private placement basis subject tolocal law requirements in the relevantjurisdictions (save where a fullyauthorised AIFM is appointed (alongwith a depositary) in which case themarketingpassportisavailable
Offering MemorandumThe ILP is required to prepare anofferingmemorandumandhave thisapprovedbytheCentralBank
There is no requirement on the 1907Partnership to prepare an offeringmemorandum
ILP 1907 LP
wwwmathesoncom Page 7
Thematerialisprovidedforgeneralinformationpurposesonlyanddoesnotpurporttocovereveryaspectofthethemesandsubjectmatterdiscussednorisit intendedtoprovideanddoesnotconstitutelegaloranyotheradviceonanyparticularmatterTheinformationinthisdocumentisprovidedsubjecttotheLegalTermsandLiabilityDisclaimercontainedontheMathesonwebsite
CopyrightcopyMatheson
DUBLIN
70SirJohnRogersonrsquosQuayDublin2Ireland
T+35312322000Edublinmathesoncom
CORK
CityGateMahonPointCorkIreland
T+353212409100Ecorkmathesoncom
LONDON
1LoveLaneLondonEC2N7JNEngland
T+442076145670Elondonmathesoncom
NEW YORK
200ParkAvenueNewYorkNY10166UnitedStates
T+16463546582Enewyorkmathesoncom
PALO ALTO
530LyttonAvenuePaloAltoCA94301UnitedStates
T+16506173351Epaloaltomathesoncom
SAN FRANCISCO
1562ndStreetSanFranciscoCA94105UnitedStates
T+16506173351Esfmathesoncom
wwwmathesoncom Page 6
VAT Exemption on Management Fees
Yes No
Minimum capitalisation requirements
No No
Timing
4-6weeks Theentireprocessasitisnotsubjecttoregulatoryapprovalislikelytotake2-4weeksdependingonhowquicklythepartiesturnaroundthedocumentation
Disclosure obligations
CentralBankwillmaintainarecordofeachinvestmentlimitedpartnershipPartnership documents will notgenerallybepubliclyavailable
Identitiesofpartners (andanychangethereof)mustbefiledwithRegistrarofCompanies
Financial Statements
Audited financial statements mustbe filed annually with the CentralBankInthecaseofanILPwhichhasappointeda fullyauthorisedAIFMamarketing passport is available sothat partnership interests can bemarketed to professional investorsthroughouttheEuropeanUnion
Financial statements must be filedannually with the CRO (depending onthe size of the 1907 Partnership thefinancial statements may need to beaudited)
Marketing
In the case of an ILP which hasappointed a fully authorised AIFMa marketing passport is availableso thatpartnership interestscanbemarketed to professional investorsthroughouttheEuropeanUnion
Nomarketingpassportisavailableandpartnership interests may be sold ona private placement basis subject tolocal law requirements in the relevantjurisdictions (save where a fullyauthorised AIFM is appointed (alongwith a depositary) in which case themarketingpassportisavailable
Offering MemorandumThe ILP is required to prepare anofferingmemorandumandhave thisapprovedbytheCentralBank
There is no requirement on the 1907Partnership to prepare an offeringmemorandum
ILP 1907 LP
wwwmathesoncom Page 7
Thematerialisprovidedforgeneralinformationpurposesonlyanddoesnotpurporttocovereveryaspectofthethemesandsubjectmatterdiscussednorisit intendedtoprovideanddoesnotconstitutelegaloranyotheradviceonanyparticularmatterTheinformationinthisdocumentisprovidedsubjecttotheLegalTermsandLiabilityDisclaimercontainedontheMathesonwebsite
CopyrightcopyMatheson
DUBLIN
70SirJohnRogersonrsquosQuayDublin2Ireland
T+35312322000Edublinmathesoncom
CORK
CityGateMahonPointCorkIreland
T+353212409100Ecorkmathesoncom
LONDON
1LoveLaneLondonEC2N7JNEngland
T+442076145670Elondonmathesoncom
NEW YORK
200ParkAvenueNewYorkNY10166UnitedStates
T+16463546582Enewyorkmathesoncom
PALO ALTO
530LyttonAvenuePaloAltoCA94301UnitedStates
T+16506173351Epaloaltomathesoncom
SAN FRANCISCO
1562ndStreetSanFranciscoCA94105UnitedStates
T+16506173351Esfmathesoncom
wwwmathesoncom Page 7
Thematerialisprovidedforgeneralinformationpurposesonlyanddoesnotpurporttocovereveryaspectofthethemesandsubjectmatterdiscussednorisit intendedtoprovideanddoesnotconstitutelegaloranyotheradviceonanyparticularmatterTheinformationinthisdocumentisprovidedsubjecttotheLegalTermsandLiabilityDisclaimercontainedontheMathesonwebsite
CopyrightcopyMatheson
DUBLIN
70SirJohnRogersonrsquosQuayDublin2Ireland
T+35312322000Edublinmathesoncom
CORK
CityGateMahonPointCorkIreland
T+353212409100Ecorkmathesoncom
LONDON
1LoveLaneLondonEC2N7JNEngland
T+442076145670Elondonmathesoncom
NEW YORK
200ParkAvenueNewYorkNY10166UnitedStates
T+16463546582Enewyorkmathesoncom
PALO ALTO
530LyttonAvenuePaloAltoCA94301UnitedStates
T+16506173351Epaloaltomathesoncom
SAN FRANCISCO
1562ndStreetSanFranciscoCA94105UnitedStates
T+16506173351Esfmathesoncom
