There are a number of ways to structure your offshore fund and
the best option for you will depend largely on the location of the
manager, your investor base and the type of investments that the
fund will make. I have set out a summary of the three most common
structures to use for offshore funds in this post.
Offshore Standalone
An offshore standalone structure is one where only one fund
vehicle is used and that fund vehicle is offshore (normally in
Cayman or the BVI). This structure is mainly usedby managers who
have no US presence. Normally an offshore standalone structure is
solely geared towards non-US investors but it may also be geared
towards US based non-taxable investors such as pension funds,
charitable organisations and endowments who want to avoid unrelated
business taxable income.
