UK - Partnership law reform welcomed by BVCA

Sarah
21 July 2006

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Following a sustained campaign by the BVCAтs 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 Commissionsт 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 todayтs - and tomorrowтs - private equity industry.

Peter Linthwaite, chief executive of the BVCA said: “The proposed changes will mean that private equity funds structured as English limited partnerships can be established more quickly and efficiently than at present, with a minimum of legal complexity, and should ensure that these vehicles remain attractive to fund managers and investors worldwide. This will help to keep London the capital of European private equity.”