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Insolvency in English limited partnerships: considerations for fund finance lenders

29 June 2026 / Author(s): Tim Lees , Alexander Hutcheson , Lewis Cymbal , Harini Viswanathan
Issue: July 2026 / Categories: Feature
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This article examines certain insolvency implications for English limited partnership structures, a common vehicle in the private capital market, with a focus on what this means for fund finance agreements. The article considers three scenarios: (i) insolvency of the sole corporate general partner; (ii) insolvency of a corporate limited partner; and (iii) the English limited partnership (ELP) itself becoming insolvent.
Whilst ELP structures and related financings vary significantly, and the drivers of distress in each case would likely be unique – noting that these structures are often “insolvency remote” by design – these considerations should provide a core foundation for analysing stress should it arise.

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