Ireland’s long-awaited reforms to its limited partnership structure are welcomed by leading international law firm, Simmons & Simmons, which opened a Dublin office in 2018. Simmons & Simmons currently have three funds partners in Dublin, with an additional six private funds partners in London, in addition to its well-known hedge funds practice. Ireland is a well-established domicile for liquid strategies, and now has aspirations to compete on the illiquid side, mainly with Luxembourg, where Simmons also has an office, opened in 2015. “Luxembourg was an earlier mover in creating structures to capture the post-AIFMD demand for onshore investment vehicles for illiquid strategies. Ireland was slower partly due to political priorities, timing around elections and also latterly due to Covid. The bill to update the 1994 Act was nearly through the Irish houses of parliament in early 2020 and so should have been passed a year ago,” says Fionán Breathnach, Partner and Country Head of Simmons’ Dublin office.
The updated Irish investment limited partnership (ILP) structure has been years in the making and it reflects a multi-year trend towards onshore vehicles: “Private funds and fund managers were traditionally offshore and unregulated, but AIFMD brought them onshore and into the regulatory net,” says Dublin office Managing Associate, James McKnight.
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