Andrius Ivanauskas, a senior associate of Bernotas & Dominas GLIMSTEDT, participated in the working group for preparation of the new Law of Partnerships which was recently adopted by the Lithuanian parliament. The new version of the Law is primarily designated to provide a handy instrument for establishing private equity funds.
GLIMSTEDT partner Remigijus Jakutis and Andrius Ivanauskas have been among the first lawyers to establish Lithuanian private equity funds based on a worldwide accepted legal form of limited liability partnership. The initiative to amend the Law on Partnership came up due to lack of legal certainty in some cases and too rigid regulation in other cases which the investors and fund managers faced. The Ministry of Economy upheld the market demand for innovative and flexible legislation and led the legislation initiative. LT VCA (Lithuanian Private Equity and Venture Capital Association) and GLIMSTEDT provided the necessary market practice which was to be reflected in the new Law.
Andrius Ivanauskas commented: ‘To some, the amendments adopted may look not worth the efforts. However, we have worked hard trying to conciliate the innovative worldwide practices of private equity funds with the current Lithuanian legislation. And we faced challenges that sometimes looked impossible to overcome. After adoption of the new law the solutions we would like to offer to our clients will have the necessary legal background. Fund managers and investors may start preparing for the new season of private equity starting on 1 September 2012 with the entry into force of the new law.’