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ARTICLE · 11 MARCH 2016

Amended Law Appealing To Private Equity Funds

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Recent amendments to partnership legislation in Bermuda, effective in December 2015 (Amendments), allow for greater flexibility in how partnerships conduct business, thereby further strengthening the appeal of Bermuda partnerships for use in private equity fund structures.

BermudaCorporate/Commercial Law

Recent amendments to partnership legislation in Bermuda, effective in December 2015 (Amendments), allow for greater flexibility in how partnerships conduct business, thereby further strengthening the appeal of Bermuda partnerships for use in private equity fund structures.

In Bermuda, a partnership is the relationship between persons carrying on business in common with a view to profit. General partnerships and limited partnerships are permitted, and these can be local, exempted or overseas partnerships.

Partnerships are often used as vehicles for private equity funds, which are entities used by high net worth individuals and institutions typically to invest in the acquisition of companies.

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