Should I set up an offshore fund structure?
Offshore funds are typically created by hedge fund managers that have an expectation of receiving significant capital contributions from investors located outside of the United States. Offshore funds are also attractive to U.S. tax-exempt investors as a way to avoid unrelated business taxable income (UBTI). Offshore funds are generally established in Caribbean jurisdictions, although a European offshore entity may be more appropriate if a substantial number of European investors are expected. We can help you determine whether an offshore fund is necessary based on your fund’s needs. Additionally, we can help you determine the proper structure (parallel or master-feeder fund) and the most desirable offshore jurisdiction (Cayman, BVI, Ireland, Luxembourg, etc.) based on your fund’s unique characteristics.