Parallel investment funds have increasingly become a preferred
structure for sophisticated private equity fund managers seeking to
access capital with multi-jurisdictional solutions.
A parallel funds structure is composed of side-by-side
vehicle(s) which invest and divest alongside the main fund, usually
on a pro rata basis per their commitments and at the same time, in
a common portfolio of assets. Operational terms of the parallel
fund are similar to those of the main one, and include a common
investment policy and common asset targets. The differences between
them are mainly due to regulatory or operational reasons.
In practice, global private equity asset managers have to
reconcile the concerns of various types of investors in various
jurisdictions. Investors' ability to invest in a traditional
single main investment vehicle may be restricted as they have
specific tax and/or regulatory requirements which cannot be
accommodated . In a parallel fund structure, a
