What is an ESVCLP?
Early-Stage Venture Capital Limited Partnerships (ESVCLP) is a government programme providing support to fund managers and investors for the purposes of stimulating early-stage venture capital investments.
ESVCLP status can only be achieved by establishing a new partnership business structure that meets the eligibility criteria and then applying to Industry Innovation and Science Australia for registration.
What are the advantages?
ESVCLP status gives fund managers the structure to invest in Early Stage Venture Capital opportunities while benefiting from the tax advantages offered by the federal government. Importantly this structure supports investment in new business ideas and innovation.
ESVCLP status supports Australian businesses and can
- provide tax benefits to fund managers and investors
- help fund managers attract pooled capital
- connect investors with early-stage businesses
Once registered, the ESVCLP can begin making early-stage venture capital investments in companies or unit trusts.
How do you set up an ESVCLP?
Meeting the eligibility criteria to achieve ESVCLP status can be complex and specific structuring may be required. There are three areas of expertise that are critical in delivering a successful ESVCLP:
- Structuring – is your ESVCLP set up in the most tax effective way?
- Legal – is your ESVCLP both legally effective and practically applicable?
- Technical – does your Compliance Plan cover AFSL compliance and reporting requirements?
How can King Irving help?
King Irving is uniquely positioned with in-house structuring, legal and technical expertise. Our commercial background and focus on execution mean transparency and delivery for your business. We aim to build business that is relational rather than transactional where we partner with you to help your business grow.
We are experts in the ESVCLP Registration Process. If you are interested in achieving ESVCLP status and/or require legal advice on the benefits of obtaining ESVCLP status, please contact us to find out how we can help.