The Use Of Limited Partnerships In Funding Structures

More than a century on, Limited Partnerships remain popular, given they benefit from the tax and confidentiality advantages of partnerships, with the added attraction of limited liability for their limited partners. In more recent times, they are used by promoters of Irish regulated funds as they are treated as "look through entities" for tax purposes and are a cost effective way of creating separate security packages where financing is on a limited recourse basis.

What is a limited partnership?

A limited partnership ("LP") is governed by The Limited Partnership Act 1907. An LP does not have a legal personality separate from its partners and only the limited partners can benefit from limited liability. An LP must comprise at least one partner with unlimited liability, known as a general partner, and at least one limited partner whose liability is limited to the amount of capital it contributes to the partnership. The partners will enter into a partnership deed,