A new limited partnership (LP) has been established as a vehicle for the Kahnawake Sovereign Wealth Fund (KSWF), a move intended to protect the fund’s assets and ease access to capital.
“It’s just a natural progression for the fund,” said Mohawk Council of Kahnawake (MCK) chief Paul Rice, who leads the economic development portfolio. “This is kind of a standard structuring for First Nations when they put together either sovereign wealth funds or companies to manage large assets.”
A limited partnership is a type of enterprise made up of at least two partners. In the case of the KSWF LP, the MCK is a limited partner, restricting its liability for debts, while another new entity, Kahnawake Sovereign Wealth Management Inc., is a general partner. This kind of structure always has at least one general partner, tasked with managing operations, and one limited partner.
Part of the MCK’s Revenue and Business Development Unit will be moved to Kahnawake Sovereign Wealth Management Inc., so that these individuals can continue to administer the fund. This corporation will be overseen by a board of directors, which will be appointed by the MCK.
The KSWF’s tax exemption will be maintained under the new arrangement, Rice confirmed.
“Really, it provides insulation for the community’s balance sheets to protect community assets. It allows us to better leverage financing for other similar revenue generation projects with similar risk-return profiles,” said Rice of the limited partnership, adding that the structure will also aid in eligibility for subsidies and government guarantees on debt taken on for future projects.
According to the press release announcing the move, external financial and legal advisors recommended that the fund use a limited partnership structure. The release also suggested governance benefits, ensuring “decisions are insulated from day-to-day politics while maintaining MCK oversight.”
The announcement comes a week after the KSWF’s annual report showed an 8.3 percent return over the previous fiscal year, bringing the fund’s total balance north of $40 million. The KSWF’s goal is to raise $1 billion for the community over decades at a rate of seven percent growth or better per year through a mix of market and direct investments, including the Des Cultures Windfarm project.
“That would really, for us, lower our reliance on external government funding, which is really part of our political priorities, which is financial and economic independence,” said Rice.
The fund is currently in its third operational year. It began with just shy of $33.1 million, which was set aside after the sale of e-gaming company Continent 8 in 2016.
All profits from the fund will be reinvested until the 2034-2035 fiscal year, at which point money could begin to flow to community initiatives while still prioritizing the fund’s growth. That waiting period does not apply to sources of own-source revenue that are not part of the fund, notably revenue from electronic gaming devices (EGDs), which already cover a significant portion of the MCK’s annual budget.
marcus@easterndoor.com
Marcus Bankuti, Local Journalism Initiative Reporter
By Marcus Bankuti, Local Journalism Initiative Reporter
Original Published on Aug 14, 2026 at 11:09
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