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Investment Partnership Agreement for Australia

Investment Partnership Agreement Template for Australia

A comprehensive legal agreement governed by Australian law that establishes and regulates an investment partnership structure between multiple parties, typically involving general partners who manage the partnership and limited partners who provide capital. The document outlines capital contributions, management responsibilities, investment strategies, profit sharing arrangements, and partner rights and obligations while ensuring compliance with Australian partnership laws, corporations law, and financial services regulations. It includes detailed provisions for partnership governance, investment parameters, distribution mechanisms, and exit arrangements.

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What is a Investment Partnership Agreement?

The Investment Partnership Agreement serves as the foundational document for establishing and operating an investment partnership in Australia. It is primarily used when two or more parties wish to form a partnership for investment purposes, with one or more partners managing the partnership (general partners) and others contributing capital (limited partners). The agreement must comply with Australian partnership law, including state-specific Partnership Acts, the Corporations Act 2001, and relevant financial services regulations. It details critical aspects such as capital commitments, investment strategy, management rights, profit sharing, transfer restrictions, and partner obligations. This document is essential for private equity funds, venture capital firms, and other investment vehicles operating in Australia, providing the legal framework for pooling capital and managing investments while protecting all partners' interests.

What sections should be included in a Investment Partnership Agreement?

1. Parties: Identification of all partners, including general and limited partners, with their full legal names and addresses

2. Background: Context of the partnership formation, investment objectives, and general purpose

3. Definitions: Detailed definitions of terms used throughout the agreement

4. Partnership Formation and Term: Establishment of the partnership, commencement date, and duration

5. Capital Contributions: Initial and subsequent capital contributions, procedures for additional contributions

6. Partnership Interests: Description of partnership interests, classes of interests, and ownership percentages

7. Management and Control: Management structure, decision-making processes, and voting rights

8. Investment Strategy and Restrictions: Agreed investment parameters, restrictions, and target investments

9. Distributions and Allocations: Distribution policy, profit/loss allocation, and distribution waterfall

10. Transfer of Interests: Rules and restrictions regarding transfer of partnership interests

11. Partner Admission and Withdrawal: Procedures for admitting new partners and handling partner withdrawals

12. Meetings and Reporting: Requirements for partner meetings and financial reporting obligations

13. Termination and Dissolution: Circumstances and procedures for partnership termination and asset distribution

14. Confidentiality: Confidentiality obligations regarding partnership information

15. Governing Law and Jurisdiction: Applicable law and jurisdiction for dispute resolution

What sections are optional to include in a Investment Partnership Agreement?

1. Key Person Provisions: Used when specific individuals are crucial to the partnership's success, defining their roles and contingencies

2. Co-Investment Rights: Include when partners have rights to co-invest in specific opportunities

3. ESG Policy: Environmental, Social, and Governance criteria when the partnership has specific ESG commitments

4. FATCA Compliance: Include when the partnership has US investors or US investments

5. Side Letter Rights: When certain partners have negotiated special rights via side letters

6. Investment Committee: When a formal investment committee structure is required

7. Default Provisions: Detailed provisions for partner default scenarios

8. Tag-Along and Drag-Along Rights: Include for partnerships where these rights are relevant to exit strategies

What schedules should be included in a Investment Partnership Agreement?

1. Schedule 1 - Initial Capital Contributions: Detailed breakdown of each partner's initial capital commitment

2. Schedule 2 - Partnership Interests: Current register of partnership interests and ownership percentages

3. Schedule 3 - Investment Guidelines: Detailed investment criteria, restrictions, and guidelines

4. Schedule 4 - Management Fee Structure: Calculation and payment terms for management fees

5. Schedule 5 - Distribution Waterfall: Detailed mechanics of the distribution waterfall

6. Schedule 6 - Valuation Policy: Methodology for valuing partnership assets

7. Appendix A - Partner Contact Details: Contact information for all partners and authorized representatives

8. Appendix B - Form of Transfer Notice: Standard form for notifying transfer of partnership interests

9. Appendix C - Subscription Agreement Template: Template for new partner subscriptions

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Australia

Publisher

Genie AI

Cost

Free to use

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