Ireland's Updated ILP Legislation: Impact on Private Equity Funds

The long-awaited update to the Investment Limited Partnership (ILP) Bill in Ireland has now passed all stages of the parliamentary process. The new ILP legislation makes Ireland an even more competitive jurisdiction for private investment funds, like private equity, and will likely see not only new business flow into Ireland but also established managers in other jurisdictions move domiciles. The updates to the ILP and AIF Rulebook reflect typical features of close-ended funds. These features will be available to close-ended qualifying investor fund partnerships as well as other available legal structures.

We expect that the ILP amendments will drive strong activity for Ireland in January 2021 and across the new year, making Ireland a highly attractive jurisdiction for private capital asset managers – especially those based in the UK, US, Europe and Asia.

What does it mean for private equity managers?

A recent Preqin report*, they forecasted continued and robust growth across alternatives. The fastest growing asset class is expected to be private equity and is projected to have an AUM of $9trillon by 2025. As a result of the new ILP updates, Ireland can now expect increased interest from private equity managers looking to establish parallel European structures to their existing Cayman/Delaware funds, to distribute to European investors via the AIFMD passport. The ILP is authorised and regulated by the Central Bank of Ireland (CBI) and is a common law partnership structure and tax transparent AIF.

Not only does the ILP offer private equity managers flexibility but also cost-efficient solutions allowing multiple sub-funds within one ILP structure. The ILP will allow fund managers to set up and operate multiple funds under one umbrella structure.

How can Intertrust Group help?

Intertrust Group’s in a unique position to service private equity fund structures from Ireland. We have established a large private capital client base in Ireland and across the globe, with a proven track record and strong expertise in helping private investment fund managers in popular fund jurisdictions such as Luxembourg, Cayman, Jersey and Guernsey.

Our proposition gives us the ability to service the ILP structure end-to-end across our full suite of services from funds, corporate and capital markets service lines including third-party AIFM, fund administration, SPV/HoldCo administration, middle office and carried interest and deferred compensation services.

To discover more about the ILP and how Intertrust Group can help you accelerate the possible across the full lifecycle of your private equity fund, get in touch with our experts.

 

* Preqin Special Report: ‘The Future of Alternatives 2025’, published November 2020