BVI launches new LP law

BVI Finance, the organisation responsible for promoting the BVI’s financial services industry, outlined four key areas where the law is expected to benefit PE funds.

New LPs will be able to choose legal personality, allowing them to hold assets and enter into contracts as well as start legal proceedings in the name of the partnership.

They will also be able to register charges, which provides greater certainty to lenders and enables LPs to borrow to fund operations.

Forfeiture provisions, which are typical in most LP agreements, will be enforceable as the common law position on penalties will not be applied.

Finally, a model agreement is included, which should allow LPs to be set up quickly if necessary.

In addition to this, M&A provisions from the BVI Business Companies Act are applied in the new law, meaning LPs can merge or consolidate with other LPs.

Lorna Smith, the interim executive director of BVI Finance, said in a statement that lawyers from eight BVI-based firms worked on the statute.

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• Topics
• Funds
• LPs
• GPs
• UK limited partnership