The SLP is a partnership with no legal personality, following the usual common law partnership regime, and offers a high degree of contractual flexibility and cost efficiency.
It can be structured under different forms, such as a regulated investment entity (SICAV under the SIF regime, or a SICAR) or an unregulated entity.
Fund managers – in particular private equity and real estate managers - can use the SLP investment structure and benefit from the following key advantages:
If regulated, an SLP may be set up as an umbrella vehicle with various investment strategies and segregated portfolios of assets (defined as sub-fund or compartment).
For SLPs that qualify as an Alternative Investment Fund, they are subject to the relevant provisions of the AIFMD.
An SLP that will qualify as an AIF also benefits from the overall control framework and governance of a fully authorized AIFM.
This structure of management and corporate governance gives additional comfort to the LPs through the provisions of the AIFMD that guarantee a robust level of protection to the investors while avoiding the AIFM to support a double layer of regulation at the level of its AIF.