Limited partnerships in Bulgarian law as an option for structuring of an alternative investment fund

Abstract

This study aims to clarify several groups of issues that are addressed in their relationship: 1) what are alternative investment funds and what are the requirements for them in both EU law and Bulgarian law; 2) what are the reasons justifying the interest in these relatively "exotic" investment vehicles; and 3) to what extent the limited partnerships, as regulated in the current Commercial act, are a suitable legal organizational form for structuring an alternative investment fund. Based on an analysis of the relevant norms of European legislation and the current Bulgarian law, the main conclusions are reached, namely that a general category of limited partnerships can be distinguished and that in a structure that includes a company – fund manager as a General partner (unlimited liability partner), and investors – as a limited liability partners, Limited partnerships can be used to implement AIF for Private equity investments. Such a form of structuring the AIF could serve to meet the objectives set before the Fund Manager of Financial Instruments in Bulgaria EAD in its capacity as an institution that combines on national level the management of funds for financial instruments from the EU Operational Programs.

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