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Aspiring Lawyers - Applications & General Advice
Applications Discussion
Case study - Limited partnership or private fund limited partnership?
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<blockquote data-quote="achramore" data-source="post: 7894" data-attributes="member: 582"><p>[USER=1]@Jaysen[/USER] Thanks for your response!!</p><p></p><p>The only real disadvantage I can find is that there is no restriction on a limited partner of a PFLP withdrawing capital contributed to that PFLP during the life of that PFLP.</p><p>In a traditional Limited partnership, limited partners can withdraw capital contributions contributed to the limited partnership but will be held liable for the debts of that limited partnership up to the amount of capital withdrawn.</p><p></p><p>Maybe at the time of the limited partner withdrawing his capital contributions, the private fund doesn't have the money to pay the contributions back to the limited partner.</p><p></p><p>Would you say that's a valid disadvantage?</p></blockquote><p></p>
[QUOTE="achramore, post: 7894, member: 582"] [USER=1]@Jaysen[/USER] Thanks for your response!! The only real disadvantage I can find is that there is no restriction on a limited partner of a PFLP withdrawing capital contributed to that PFLP during the life of that PFLP. In a traditional Limited partnership, limited partners can withdraw capital contributions contributed to the limited partnership but will be held liable for the debts of that limited partnership up to the amount of capital withdrawn. Maybe at the time of the limited partner withdrawing his capital contributions, the private fund doesn't have the money to pay the contributions back to the limited partner. Would you say that's a valid disadvantage? [/QUOTE]
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Aspiring Lawyers - Applications & General Advice
Applications Discussion
Case study - Limited partnership or private fund limited partnership?
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