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.