Structuring an Australian Venture Capital Fund: ESVCLP vs Wholesale Unit Trust
The choice is not simply tax concessions versus flexibility. It determines the fund’s investible universe, fundraising proposition, governance burden and ability to respond when strategy changes. Australian venture capital fund managers commonly compare an Early Stage Venture Capital Limited Partnership (ESVCLP) with a wholesale unit trust. Both can pool capital for investment in private companies, but they are not interchangeable structures. An ESVCLP is a statutory venture capital investment vehicle with valuable tax concessions and a defined policy purpose. A wholesale unit trust is a contractual trust structure that can […]