New Limited Partnership created by UK Government

The UK Government this week published the final text of a bill to create a new type of limited partnership in the UK.

The private fund limited partnership (“PFLP”) will be a popular vehicle for investments in various sectors including real estate and infrastructure. The PFLP vehicle would retain the flexibility of a limited partnership and limited liability for investors, whilst setting out clearer guidance in relation to the management rights that investors could exercise without compromising their limited liability status.

The vehicle will take effect in April 2017.

A summary of the key changes is available here: https://www.gov.uk/government/publications/legislative-reform-order-to-change-partnership-legislation-for-private-equity-investments

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