By Karl Cowman, Client Relationship Director
Ireland has rapidly emerged as one of the leading European hubs for private equity (PE) firms. With a compelling blend of regulatory flexibility, favourable tax treatment, skilled talent and global connectivity, Ireland offers an attractive environment for PE fund managers seeking to structure funds, establish offices, and access European markets.
In this article, we take a look at what makes Ireland an ideal jurisdiction for private equity firms to do business.
1. Tax-efficient structures for PE funds
Ireland offers a suite of tax-efficient investment vehicles tailored for private equity, including the Irish Collective Asset-management Vehicle (ICAV), the Investment Limited Partnership (ILP), and Section 110 companies. These vehicles provide:
- Tax neutrality at the fund level avoiding double taxation
- Exemptions on capital gains and income for qualifying non-resident investors
The ILP, modernised under 2021 reforms, is particularly popular for private equity and venture capital funds, aligning closely with international partnership models (such as those in Delaware, Luxembourg, the UK and the Cayman Islands) and providing a tax efficient, legally robust and operationally efficient structure.
Exponent Private Equity, a client of IQ-EQ, is one such firm that has adopted the ILP as its structure of choice. Ankit Verma, Finance Director at Exponent, commented that the “ILP has provided us with a tax-transparent, regulated and highly flexible fund structure delivering robust investor protection, cross-border fundraising and an efficient operational model.”
2. EU market access
As an EU member, Ireland provides unrestricted access to the European Economic Area (EEA), which is critical for global private equity firms looking to raise capital and invest across Europe. Through passporting rights, Irish-regulated funds can be marketed freely to professional investors throughout the EU under the Alternative Investment Fund Managers Directive (AIFMD).
This makes Ireland a gateway to over 500 million European consumers and institutional investors.
3. Robust regulatory framework
Ireland boasts a well-established and credible financial regulator, the Central Bank of Ireland (CBI), which has developed strong expertise in fund regulation. The regulatory framework balances investor protection with commercial flexibility, making it easier for fund managers to establish and operate PE structures efficiently.
The CBI has also streamlined its approval processes, especially for ILPs, allowing fund managers to launch new vehicles quickly.
4. Deep talent pool and professional ecosystem
Ireland is home to a large pool of highly skilled financial professionals, including legal advisors, fund administrators, auditors and tax experts with specialised knowledge of private equity structures and compliance.
The presence of major international law firms, the ‘Big Four’ auditors and an array of fund service providers creates a rich ecosystem that supports PE operations seamlessly from fund formation to exit strategies.
5. Pro-business environment
Ireland consistently ranks as one of the most business-friendly environments in Europe:
- 12.5% corporate tax rate (one of the lowest in the OECD)
- Extensive double taxation treaty network with over 70 countries
- Political and legal stability
- Common law legal system, which is familiar to U.S. and UK investors
These attributes provide PE firms with legal certainty and predictability in structuring complex cross-border investments.
6. Global financial services hub
Ireland has positioned itself as a global centre for financial services, especially in alternative investment funds (AIFs). Dublin, in particular, is home to a thriving financial services community with expertise in fund domiciliation, compliance, administration and distribution.
Ireland ranks second globally for AIF administration, managing over €4 trillion in alternative assets as of 2023.
7. Sustainability and ESG alignment
With environmental, social and governance (ESG) factors becoming central to PE investment strategies, Ireland has shown leadership in supporting green finance and sustainability-linked investments. Its regulatory framework integrates EU-wide ESG directives, making it a forward-looking jurisdiction for responsible investing.
In summary, Ireland offers an exceptional environment for private equity firms looking to establish a European base or launch new investment vehicles. Its combination of tax efficiency, EU access, regulatory clarity, skilled workforce and business-friendly climate makes it one of the most compelling destinations globally for PE managers.
For firms aiming to scale operations, attract European capital and manage investments efficiently, Ireland presents not just a viable option, but a strategic advantage.
