BVI Limited Partnership Act Unites Flexible Features of Different Jurisdictions’ Regulatory Frameworks

One way a jurisdiction may seek to attract private fund managers and increase its standing as an offshore investment haven is by diversifying its stable of available corporate structures. See “Ireland Further Opens the Door for Loan Origination in Europe by Relaxing Restrictions on Eligible Investments by Certain Irish Funds” (Jan. 19, 2017); “New Luxembourg RAIF Structure Offers Marketing Options and Tax Benefits for Non-E.U. Hedge Fund Managers (Part Two of Two)” (Apr. 28, 2016); and “New Cayman Islands LLC Structure Offers Flexibility to Hedge Fund Managers” (Mar. 10, 2016). The British Virgin Islands (BVI) has recently joined this trend, with the crafting of a bill for the formation of a new and improved limited partnership. The Limited Partnership Act includes a clearly codified role for registered agents, along with safe harbor provisions allowing limited partners to obtain critically important investment data and take other actions to safeguard their interests without endangering their limited liability status. The Hedge Fund Law Report recently interviewed Robert Briant, partner at Conyers Dill Pearman and one of the authors of the act. This article presents Briant’s insights into the limited partnership structure, including its distinguishing features; the envisioned use of the vehicle by hedge and private equity funds; and ways the limited partnership is likely to fit into the international funds market as a whole. For more on the BVI, see “Advantages and Drawbacks of Four Main Fund Structures for Offshore Launches in the BVI” (Apr. 27, 2017); and “Use by Private Fund Managers of the British Virgin Islands for Private Equity Fund Formation and Private Equity Investments” (Nov. 29, 2012).

To read the full article

Continue reading your article with a HFLR subscription.