An exempted limited partnership is an arrangement established under the Exempted Limited Partnership Law in the Cayman Islands and is an entity comprising both General and Limited Partners. It was created as an improvement to the Limited Partnership which exists under the Partnership Law and to meet a demand from financial institutions in the United States for a limited partnership that could be used for mutual funds in the Cayman Islands
An exempted limited partnership is not a separate legal entity but an arrangement with contractual obligations affecting the partners set out in a partnership agreement.
The name of the arrangement must include the words ‘Limited Partnership’ or the letters ‘L.P.’ or “LP”
An exempted limited partnership may be entered into for a fixed term or have unlimited duration.