According to fund experts at offshore law firm Mourant du Feu & Jeune, two new “limited partnership” structures enabled through the law change will boost the island’s funds sector.
The new independent vehicles, which are modelled on the existing 1994 limited partnerships law, will be known as the “separate limited partnership” and the “incorporated limited partnership”.
Each of the two proposed limited partnership vehicles will have a separate legal personality and the incorporated limited partnership will be incorporated.
Limited partnerships are frequently used in fund structures but currently the Jersey limited partnership does not have a separate legal personality and must contract through its general partner, typically a body corporate which has unlimited liability for the debts of the partnership.
Mourant du Feu & Jeune says there is increasing demand among fund promoters for limited partnerships with separate legal personalities so the assets of the partnership can be recorded in the name of the partnership rather than its general partner.
Mourant du Feu & Jeune associate Sophie Travis says: “We anticipate that the new limited partnerships will be well received by the funds industry and will complete the range of limited partnerships available in Jersey.”