The Securities Act 2005 allows a collective investment scheme to be structured as a limited partnership. The Limited Partnership Act 2011 will provide a statutory framework for a modern investment vehicle for specialised collective investment schemes structured in the form of a limited partnership.
The limited partnership is a fund of pooled interests managed by a General Partner who raises capital (i.e. committed capital or commitments) from outside investors (Limited Partners).
The partnership is independent in that the management of the investment pool is performed by a management firm that has no outside affiliation or ownership. Most funds of this type require a nominal investment by the General Partner. In addition, the General Partner usually takes a profit split (known as carried interest). Another unique feature of these types of vehicles is that any proceeds from investments must be distributed to investors – they cannot be reinvested except under a few exceptional conditions.
2 comments:
Do you have a copy of the Limited Partnership Act, Mauritius? Could you provide me with a copy of the same at rimabshah@gmail.com.
Thanks.
have the LP act been proclaimed. can it be used now
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