Capital Account Fund

The Special Limited Partnership may issue securities to their investors (for instance shares or units) but may also create, for each Limited Partner, one separate Capital Account.

The Capital Account of a Limited Partner works like a ‘bank account’ or more precisely as a current account which is between the SLP/Fund and LP.

The Capital Account grows and declines further to:

• Contributions and withdrawals of capital/moneys by the Limited Partner to the Fund
• Profits or losses of the Limited Partnership allocated to that particular Partner (which can be different from one LP to the other)

The manner in which allocations of realised and unrealised gains and losses, together with income and expenses, are made is governed by the Limited Partnership Agreement or any other terms and conditions previously negotiated with each Partner(s).

Structuring the participation of Limited Partners in a Special Limited Partnership by way of Capital Accounts rather than through the issue of securities may be attractive for several reasons.