Master Limited Partnerships

Master Limited Partnerships (MLPs) offer a unique combination of liquidity and cash flow to investors while serving as preferred access vehicles to capital markets. MLPs trade on major exchanges, like most publicly traded corporations. As partnerships, they avoid corporate income tax at the entity level, affording them a distinct cost of capital advantage over corporations. They predominately invest in energy infrastructure and touch many parts of the domestic energy supply chain, serving as a critical component of the general economy. This white paper provides an overview of the risks and opportunities associated with this investment vehicle.