master limited partnership


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Master limited partnership (MLP)

Master Limited Partnership

A limited partnership with ownership units that may be traded on an exchange. A limited partnership consists of a general partner, who manages the venture, and limited partners, who simply provide capital. A master limited partnership allows limited partners to buy and sell units of the venture as if they were shares in a publicly-traded company. Limited partners often receive cash distributions, which are similar to dividends, on a regular basis. This business form combines the tax advantages of a partnership, which does not pay tax on its profit, with the liquidity of a publicly-traded company. It is also called a publicly traded partnership.

master limited partnership (MLP)

A limited partnership that provides an investor with a direct interest in a group of assets (generally, oil and gas properties). Master limited partnership units trade publicly like stock and thus provide the investor significantly more liquidity than ordinary limited partnerships. See also roll-up.
References in periodicals archive ?
In order to grow our economy and increase our energy security, sound economic tools like master limited partnerships (MLPs) should be expanded to include additional domestic energy sources.
Alerian Capital Management, LLC, a registered investment advisor that manages portfolios exclusively focused on energy master limited partnerships in both the private and public equity markets.
Rio Vista is an energy services master limited partnership that owns certain liquefied petroleum gas assets, including pipelines running from a terminal facility in Brownsville, Texas owned by TransMontaigne Product Services, Inc.
The Claymore/Zacks Yield Hog ETF is the first distribution-optimized ETF and the first ETF to invest in an index that can invest in traditional preferred securities, master limited partnerships ("MLPs") and closed-end funds.
NEW YORK -- Alerian Capital Management LLC announced today that Bear Stearns has launched the first Exchange Traded Note (ETN) linked to an index of Master Limited Partnerships.
Unlike direct investments in Master Limited Partnerships, investors will not receive K-1s from the underlying partnerships, but will instead receive a Form 1099 reflecting the distribution pass through as ordinary income.
The Alerian MLP Index is a composite of the 50 most prominent energy master limited partnerships and is calculated by Standard & Poor's using a float-adjusted market capitalization methodology, providing an unbiased, comprehensive benchmark for the performance of this emerging asset class.