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Recognising the demand among fund managers to utilise a
regulated partnership vehicle, a number of important enhancements
have recently been made to the Irish Investment Limited Partnership
(
ILP ) vehicle through the enactment of
the Investment Limited Partnerships (Amendment) Act 2020 (see our
earlier update
). These
enhancements are aimed at ensuring that Ireland has a best-in
breed regulated partnership vehicle building on Ireland s
position as the domicile of choice for asset managers wishing to
establish European investment funds. Our briefing note The
Irish Limited Partnership - Partnering for Growth outlines
Fund administration: More promise for the unloved ELTIF
The SFDR regulation and the administration of withholding tax have been challenges for third-party fund administrators over the past year. But in our poll of leading figures in the admin industry, we also hear there’s a better future for the ELTIF.
HOPE FOR THE ELTIF
Eoin FitzGerald, MD and office head, BBH Dublin
There had been much speculation about domicile shifts around Brexit, but so far little has changed. Ireland and Luxembourg appear to have copper-fastened their statuses as the leading cross-border fund centres. The recent addition of the Irish Limited Partnership (ILP) to Ireland’s toolkit for private market funds is a welcome addition, particularly with its common law framework and cultural alignment with US and UK alternative managers.
Venture capital funds in Ireland (“
VCs”) typically invest in the technology sector, with a strong focus on software, life sciences and FinTech.
Do venture capital funds require any approvals before investing in your jurisdiction?
There is generally limited regulation in respect to VCs deploying capital by investing into investee entities in Ireland. Approvals tend to be at the fund level in terms of the regulation of how VCs raise funds and how their investment activities are regulated.
Investments into investee companies operating in certain regulated industries may require regulatory approval from the relevant regulatory body for that industry (particularly if change of control thresholds are triggered as a result of the proposed investment). Specific requirements will vary from industry to industry.
Talking heads: Ireland seeks premier league membership for private assets
Nicholas Pratt writes, 2021 promises to be a pivotal year.
Entering 2021, Ireland is grasping the national regulator’s recent review of fund management companies operating under the ‘CP86’ regime – that is, guidance introduced in 2016 designed to strengthen fund governance through measures such as board effectiveness, managerial functions and oversight of third-party service providers.
At the EU level, Ireland – along with other fund domiciles – faces a review of alternative investing rules.
But there is also optimism that Ireland will gain from the growth in private-capital investments now that amendments to the Irish Limited Partnership Act have been made.