Monday, April 11, 2011
Jersey’s appeal as a domicile for funds and other investment entities will be further strengthened by the imminent introduction of legislation to permit the formation of Incorporated Limited Partnerships (ILPs), and the creation of a dedicated and distinct law for the constitution of Separate Limited Partnerships (SLPs).
When the legislation is adopted, Jersey will be the first Crown Dependency to offer these company forms. Legislation providing for ILPs - the Draft Incorporated Limited Partnerships (Jersey) Regulations 201-, and the Draft Incorporated Limited Partnerships (Jersey) Law 2011 (Appointed Day) Act 201-, were lodged in the States on April 5, 2011. SLPs can be formed from April 20, the government has confirmed.
Commenting on the new structures, Heather Bestwick, Technical Director of Jersey Finance, said:
”The new Separate Limited Partnership and Incorporated Limited Partnership will be attractive additions to the Jersey Limited Partnership regime. Since the Limited Partnerships (Jersey) Law 1994 came into force, the Limited Partnership has become a vehicle of choice in establishing private equity funds and venture capital schemes. In the last few years, Jersey’s Limited Partnership has also been used to form funds investing in diverse asset classes, including real estate and mezzanine debt and in raising Tier 1 capital for financial institutions."
“The new SLP will appeal to funds clients and those wishing to set up carried interest vehicles and the new ILP will find use in structured finance. The range of possibilities that the new partnerships will bring, with their variations of legal personality and asset ownership combined with ¬commercial flexibility will further enhance Jersey’s appeal as a domicile for fund and finance vehicles.”