What is a venture capital management partnership?
A venture capital management partnership is a limited partnership that: • is a general partner of one or more the following: • one or more venture capital limited partnerships (VCLPs) • one or more early stage venture capital limited partnerships (ESVCLPs) • one or more Australian venture capital fund of funds (AFOF), and • only carries on activities that are related to being such general partner. A limited partnership ceases to be a venture capital management partnership if it ceases to meet these requirements. A venture capital management partnership, in the same way as a VCLP or an AFOF, is not a corporate limited partnership for tax purposes. It is treated as an ordinary partnership which provides for flow-through tax treatment.
