ARTICLE · 16 APRIL 2018

How To Start A Hedge Fund In The US 2018: The Offshore Dimension

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Many of the initial questions US counsel will have for a sponsor looking to launch a new hedge fund will be about the anticipated investor base, as that factor is fundamental in determining the appropriate fund structure.

British Virgin IslandsWealth Management

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Eric Flaye, of Conyers, shines a light on the BVI hedge fund structuring options for US sponsors.

Many of the initial questions US counsel will have for a sponsor looking to launch a new hedge fund will be about the anticipated investor base, as that factor is fundamental in determining the appropriate fund structure.

The three key categories of investors are: (i) taxable US investors; (ii) tax-exempt US investors; and (iii) non-US investors.

If the anticipated investor base will principally be comprised of taxable US investors, as a general proposition the US sponsor may rely exclusively on domestic jurisdictions (such as Delaware) for all of its potential structuring needs.

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