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Partnerships - Coggle Diagram
Partnerships
Limited partnerships
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Main features
Generally they are pass through entities from a tax perspective resulting in income being attributed to individual limited partners personally (although in Malta an LP structure is taxable as if it were a company)
The general assumes responsibility for the operations of the fund an din so doing takes on unlimited liability
Limited partners have no responsibility for the operations of the fund but can make investments into the partnership and are liable only for their paid-in or committed amounts
As a rule, a general / limited partnership must be formed by at least two persons comprising one general partner (GP) and one LP but can have multiple GPs and LPs
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There are generally two forms of partnerships available in fund structuring by whatsoever name called
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Legal forms of partnerships are frequently used in PE and hedge fund structures but they may also form part of the structuring of many different types of funds, including infrastructure funds
Some jurisdictions recognise only one form of partnership, typically the LP, while others will recognise both forms of partnership, formed under different legislation and thus with differing legal characteristics