Document background
The Limited Partnership Term Sheet is a crucial preliminary document used in the Nigerian business environment when parties are negotiating the establishment of a limited partnership structure. It serves as a roadmap for the more detailed partnership agreement that will follow, capturing essential terms such as capital commitments, management rights, economic provisions, and exit mechanisms. This document is particularly important in the Nigerian context as it must align with both federal regulations (such as CAMA 2020) and state-specific partnership laws. While mostly non-binding, except for specific provisions like confidentiality, the term sheet helps parties reach alignment on key commercial and legal terms before incurring the costs of full documentation. It's commonly used in investment scenarios where one party (the General Partner) will manage the partnership while other parties (Limited Partners) primarily provide capital.
