An excellent article in this morning's New Zealand Herald about the new limited partnership regime, due to come into force on April 1st.
Limited partnerships are the most popular structural vehicles for private equity and venture capital investment. Already available in the US, the UK, Australia and Canada, the new regime will enable New Zealand to compete for international capital on a more equal footing.
Internationally, New Zealand is already a great place to do business. The 2008 Heritage Foundation / Wall Street Journal Index of Economic Freedom ranks New Zealand's economy as the world's sixth most free. Throw in the fact that New Zealand does not impose capital gains tax on the sale of shares, the new limited liability regime could improve NZ's global ranking even further.
The architects of the new regime are to be congratulated. As one who understands the challenge of securing offshore capital for NZ companies, the opportunity to offer a limited partnership to VCs and private equity players can only help. Roll on April 1st.
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