Potential “gamechanger” for international asset managers raising European capital for private funds

Over the last 30 years, Ireland has grown to become the third largest fund domicile in the world and home to a securities services industry that administers approximately EUR4.9 trillion in fund assets.

The substantial growth of our industry is set to accelerate once the recently published Investment Limited Partnerships (Amendment) Bill 2020, which is going through the legislative process, is enacted. These legislative changes, which provide for a reformed and modernised “best in class” common law, limited partnership structure - known as the “investment limited partnership” (ILP) - will position Ireland to become a more attractive destination for private equity, private debt and real estate funds. International asset managers have indicated that the enactment of this legislation would be a “gamechanger” for their plans to raise capital in Europe.

Irish regulated investment funds already offer an attractive vehicle for international managers wishing to access the European market – in particular the Irish Collective Asset-management Vehicle (ICAV) which was primarily designed with the requirements of such investors in mind. Nevertheless, limited partnership structures are the preferred fund structure for private fund managers. The ILP shares characteristics with the commonly-used, tax transparent Delaware or Cayman structures. Given that Ireland is a common law country (the only such country in the EU post-Brexit), it is anticipated that the ILP will particularly appeal to fund promoters and managers in other common law countries, such as the US, UK, Hong Kong and Australia.

If you or your clients would like more information or wish to explore the suitability of Irish regulated investment funds as an investment vehicle please contact Conor Houlihan or Seán Murray.