Launching an Offshore Hedge Fund

Should I Establish an Offshore Hedge Fund?

Brent Gillett, a partner at the Investment Law Group, has contributed a question and answer series covering the establishment of a hedge fund and laws related to hedge funds.

Question: Should I establish an offshore fund?

Answer: Offshore funds are typically created by investment managers with significant prospective investors located outside the United States. They are also attractive to U.S. tax exempt investors as a way to avoid certain taxes. Offshore funds are usually established in Caribbean jurisdictions, although
a European offshore entity may be more appropriate if a significant number of European investors are involved. 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 proper offshore jurisdiction (Cayman, BVI, Ireland) based on your fund’s unique characteristics.

Guest author: Brent S. Gillett, partner at the Investment Law Group. To find more information about the Investment Law Group follow this link.