A proposed change to Irish law would make it easier for private equity fund managers to establish operations there.
The Investment Limited Partnership (Amendment Bill) 2017 would allow for aspects such as carried interest and complex fund accounting, which are not directly available in the existing structure.
“I think it’ll encourage private equity managers who’ve never used Europe, to consider Ireland,” a lawyer told pfm.
The country is popular with hedge fund managers, but private equity managers have been held back by the lack of suitable structures, the lawyer said.
“The main challenges of the current private equity set up is that they are usually corporate structures,” the lawyer said.
“There are lots of aspects of a partnership that don’t fit into a corporate structure. Given a choice of Luxembourg or Ireland, a manager new to Europe will choose Luxembourg, as they’ve got the established partnership vehicle available. This latest announcement is the first step in making Ireland a natural home for private equity funds,” the lawyer said.
Lawyers and the investment fund industry have been consulted on the law for the last year. More details on its progress and implementation are expected in January.
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