ESLVP

Early Stage Venture Capital Limited Partnership

Structure

Limited Liability Partnership

Edison  Venture Capital  Fund  is an incorporated  limited  Liability Partnership. A limited  liability partnership (LLP)  is a business which limits the liability of some of the partners.  It must have at least one general  partner and  at least one  limited partner.

A General  Partner is responsible for running the daily business of a partnership and there is no limit on their liability.  EVC Management Pty Ltd  is the General  Partner of the Fund.

The  limited  partner is only  liable for the amount they have  invested  (similar to a fully paid  share  in a company)  and  any unpaid amount of that investment. A limited partner is not responsible or liable for debts of the partnership. A limited partner cannot take part in running the partnership or enter a contract on behalf of the partnership.

tax

Tax Incentives

A venture capital fund registered as an ESVCLP will  have flow-through tax treatment and will  not be taxed at the partnership level.

For investors this means:

  • All capital gains and profits from the disposal or realisation of an investment by the Fund will be exempt from Australian income tax.
  • All income derived from an investment of the Fund (such as dividends) will be exempt from Australian income tax.
  • However, losses from the disposal or realisation of investments by the Fund are not deductible for Australian income tax purposes and any interest incurred  by an investor on funds borrowed to invest in the Fund  will  not be deductible for Australian income tax purposes.
  • A tax offset (Rebate) is available to each investor for an amount of up to 10% of the investment made into The Fund.

Accreditation

Registration Requirements

An  ESVCLP must be registered with the Department of Industry,  Innovation and Science and  have both  its investment plan  and  partnership agreement approved before it commences its investment activities.

There  are a  number of additional requirements which must also be met in order for an ESVCLP to maintain its registration. These  additional requirements include:

diversification

An ESVCLP must not invest more than 30% of its total committed capital in one company/unit trust and any associate or other member of the same wholly owned group of that company/unit trust.

Size

The size of the ESVCLP fund must be at least $10 million and not greater than $200  million.

Eligibility

Investments made by an ESVCLP are required to be Eligible Venture Capital Investments.

Contact

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Bridging the Gap between Concept and Capital

EVC Management Pty. Ltd.
ACN 629 392 472

© Edison Venture Capital 2020

Contact

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info@edisonventurecapital.com.au

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Level 3, 143 Charlotte Street 
Brisbane QLD 4000