HM Treasury recently published proposals to reform partnership legislation to ensure that the U.K. limited partnership structure remains the vehicle of choice for European private equity, venture capital and other types of U.K.-domiciled private funds. Technical changes to the partnership legislation applicable to private funds are proposed to be made by means of a legislative reform order, intended to remove unnecessary legal complexity and administrative burdens for both limited partnership managers and investors. The reforms broadly address registration; ongoing notification requirements; capital contributions; limited partners’ rights and actions; wind-downs; and striking-off in relation to private fund limited partnerships. This article reviews the reasons for the proposed reforms and sets out the specific amendments encapsulated in the draft order and accompanying consultation paper. For more on private equity, see “Dechert Global Alternative Funds Symposium Highlights Portfolio Management and Global Trends for Private Equity and Real Estate Funds
,” Hedge Fund Law Report, Vol. 8, No. 26 (Jul. 2, 2015); and “How to Mitigate Conflicts Arising Out of Simultaneous Management of Hedge Funds and Private Equity Funds (Part Three of Three)
,” Hedge Fund Law Report, Vol. 8, No. 20 (May 21, 2015). For discussions regarding other European fund structures, see “Tax, Legal and Operational Advantages of the Irish Collective Asset-Management Vehicle Structure for Hedge Funds
,” Hedge Fund Law Report, Vol. 8, No. 32 (Aug. 13, 2015); and “How Can Hedge Fund Managers Use Luxembourg Funds to Access Investors and Investments in Europe, Asia and Latin America?
,” Hedge Fund Law Report, Vol. 5, No. 27 (Jul. 12, 2012).