Venture Capital Limited Partnerships Program (VCLP)

Grant Information

Fund managers seeking to raise a new venture capital fund of at least $10 million for investing in Australian businesses with assets of up to $250 million may be eligible for VCLP registration.

The Venture Capital Limited Partnership program aims to increase foreign investment in the Australian venture capital sector. Registration as a Venture Capital Limited Partnership entitles a fund to flow-through taxation treatment. Further, eligible foreign investors in the fund are exempt from capital gains tax on their share of any profits made by the fund. The manager is entitled to claim their carried interest in the fund on capital account rather than revenue.

Eligible investments are defined in section 118-425 of the Income Tax Assessment Act 1997. Generally, a Venture Capital Limited Partnership can invest in unlisted Australian businesses that are structured as either a company or a unit trust by acquiring shares, options, or companies or unit trusts that will delist within 12 months. The investment must be held for a minimum of 12 months.

The investment must also be at risk and the investee business must meet the following requirements:

  • The total value of its assets units. They may also invest in not more than $250 million.
  • At least 50% of employees and at least 50% of assets are in Australia.
  • Its predominant activity is not in property or land development, finance, insurance, construction or infrastructure, or making investments.

More Information

The Australian government grant programs are always being changed and updated so it can be difficult for a busy business manager to keep track of what is available. The professionals at Pattens Group are familiar with all of the 700+ grants that are currently being offered and what it takes for an application to be successful. Let us share our 30+ years of experience with you when we find a government grant for your business. Contact us today for a free no-obligation consultation.

There are hundreds of grants available, so even if you don’t find what you are looking for you may still be eligible for an unlisted grant or private funding.

To arrange a meeting with one of our accredited experienced grants managers please contact us today at 1800 PATTENS or or fill out this form.