UK - Partnership law reform welcomed by BVCA

Following a sustained campaign by the BVCA’s Legal and Technical Committee, the Minister for Trade, Investment and Foreign Affairs, Ian McCartney, yesterday issued a statement that HM Government will be taking forward the Law Commissions’ proposals for reform of limited partnership law. For private equity firms, this is a welcome announcement. Within Europe, the English limited partnership has long been the vehicle of choice for both fund managers and investors, offering the benefits of tax transparency and limited liability, combined with a high degree of flexibility. However, with the Limited Partnerships Act 1907 rapidly approaching its centenary, modernisation of UK limited partnership law is necessary to make certain that the English limited partnership continues to meet the needs of today’s - and tomorrow’s - private equity industry.