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Limited Partnership Subscription Agreement Template for Hong Kong

A comprehensive legal document governed by Hong Kong law that establishes the terms and conditions under which an investor (Limited Partner) subscribes to and acquires an interest in a limited partnership fund. The agreement details the capital commitment, payment terms, investor representations, and compliance requirements under Hong Kong regulations, particularly the Limited Partnership Fund Ordinance. It includes essential provisions for anti-money laundering compliance, investor qualifications, and ongoing obligations of the parties, while incorporating specific requirements of Hong Kong's financial regulatory framework.

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What is a Limited Partnership Subscription Agreement?

The Limited Partnership Subscription Agreement is a fundamental document used in Hong Kong's investment fund industry when admitting new limited partners to a partnership structure. This document is essential when establishing the legal relationship between investors and a limited partnership fund, structured under Hong Kong's Limited Partnership Fund Ordinance. It is typically used by private equity funds, venture capital funds, and other alternative investment vehicles to document the subscription process, capture investor details, confirm regulatory compliance, and establish the terms of the investment. The agreement must comply with Hong Kong's regulatory requirements, including anti-money laundering regulations, securities laws, and financial services regulations. It serves as both a subscription document and a binding contract that outlines capital commitments, drawdown procedures, and investor representations.

What sections should be included in a Limited Partnership Subscription Agreement?

1. Parties: Identification of the Limited Partnership, General Partner, and the Subscribing Limited Partner

2. Background: Context of the partnership and subscription opportunity

3. Definitions and Interpretation: Key terms used throughout the agreement and rules of interpretation

4. Subscription and Acceptance: Details of the partnership interest being subscribed for and acceptance process

5. Capital Commitment: Amount of capital commitment and terms of capital calls

6. Payment Terms: Terms and methods of payment for capital contributions

7. Representations and Warranties: Statements of fact and assurances from the subscriber

8. Regulatory Compliance: Compliance with Hong Kong regulations including AML and KYC requirements

9. Partnership Terms: Key terms of partnership including rights and obligations

10. Indemnification: Indemnification obligations of the subscriber

11. Confidentiality: Confidentiality obligations regarding partnership information

12. Notices: Process and requirements for giving notices under the agreement

13. Governing Law and Jurisdiction: Hong Kong law as governing law and jurisdiction details

14. General Provisions: Standard boilerplate provisions including amendments, assignments, and severability

What sections are optional to include in a Limited Partnership Subscription Agreement?

1. Tax Matters: Special tax-related provisions when dealing with tax-sensitive investors or structures

2. FATCA Compliance: Required for agreements involving US persons or entities

3. Side Letter Rights: References to any side letter arrangements for specific investors

4. Co-Investment Rights: When offering co-investment rights to certain investors

5. Mandatory Regulatory Disclosures: Additional disclosures required for regulated investors

6. Electronic Subscription Provisions: When allowing for electronic subscription process

7. Power of Attorney: When specific authorizations are needed for the General Partner

What schedules should be included in a Limited Partnership Subscription Agreement?

1. Subscription Form: Detailed form for subscriber information and subscription details

2. Partnership Agreement: Copy or summary of the main partnership agreement

3. Investment Strategy: Description of the partnership's investment strategy and objectives

4. Fee Schedule: Detailed breakdown of all fees and carried interest arrangements

5. KYC Requirements: List of required KYC documents and verification requirements

6. Wire Instructions: Banking details for capital contributions

7. Tax Forms: Required tax forms and certificates

8. Investor Qualification Form: Form to verify investor's qualification status

9. Risk Factors: Detailed disclosure of investment risks

10. Privacy Notice: Data privacy and protection policies

Authors

Alex Denne

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

Jurisdiction

Hong Kong

Publisher

Ƶ

Document Type

Loan Agreement

Sector

Banking

Cost

Free to use

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