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Related knowledge about offshore funds,Do you understand?

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Today I would like to introduce to you the relevant knowledge about offshore funds.,Let’s learn together! one、The concept of offshore funds. Offshore funds, also known as offshore securities investment funds, refer to securities investment funds in which a country's securities fund organization issues securities fund units in other countries and invests the raised funds in the securities market of its own country or a third country.。offshore funds(OffshoreFund):Mutual funds with corporate headquarters outside Hong Kong。

Most mutual funds sold in Hong Kong are in Luxembourg、Incorporation in overseas jurisdictions such as Bermuda or Dublin。two、History of Offshore Funds Offshore funds are usually domiciled in the British Virgin Islands、Offshore islands such as Cayman Islands and Bermuda。

The fund chooses to establish in these areas,This is usually because regulations on funds in these areas are relatively loose.,At the same time, the local government exempts the fund from taxes on non-local income.,also,Some places also allow funds to be publicly offered globally after establishment.。There are currently more than 6,000 funds of various types in the Cayman Islands。

As a rising star, the BVI has registered more than 3,400 regulated funds since it opened its offshore fund market in 1998.。There are currently more than 1,600 registered collective investment schemes in Bermuda.。It should be noted that,The above figures do not include the large number of funds that enjoy regulatory exemptions under local laws.。It can be seen that funds registered in offshore islands have become one of the first choices for many funds.。

three、The judicial form of offshore funds, the limited partnership among the partnership types, is the most popular organizational form of private equity funds.,More than 80% of private equity funds in the United States adopt this form,And most funds established in the United States are established as Delaware limited partnerships.,Most European private equity funds also adopt this type of organizational form.,Therefore, limited partnerships are also regarded as the key to the success of American private equity funds.。

Four、Opening an Account for Offshore Funds Offshore Funds in Cayman from a Corporate Law Perspective,Essentially it is still a Cayman exemption(exempt)company,no taxes,The difference is that it passes the charter(Registration,and comply with Cayman fund-related laws and regulations)Defines the company's relationship with investors and other relevant stakeholders,and became a fund。

So how to open a Cayman offshore fund account?,Can be used at any stage of fund establishment,It can be carried out as long as the company is established。General accounts will not be opened in Cayman.,Instead, priority can be given to opening in places such as Hong Kong and Singapore.。

In addition, there are two types of accounts after just starting operations,One is cashaccount cash account,Opened by the administrator in the name of the fund,All investments are made before entering the investment account,to access this cash account,and approved by the administrator(KYC)to enter the investment account。Investment accounts, of course, refer to accounts invested in other financial institutions when the fund is actually operating.。

five、The main forms of offshore funds refer to offshore funds here.,According to different establishment forms, they are mainly divided into private equity investment funds.(PrivateEquityFund)with hedge funds(HedgeFund)Two categories。private equity investment,即PrivateEquity,The abbreviation PE refers to investing in unlisted equity,Or an investment method in non-publicly traded equity of listed companies。

Sources of funding for private equity investments,It can also raise funds from unspecified members of the public.,Non-public issuance can also be adopted,Raise funds from institutions or individuals with risk identification and tolerance。Because private equity investment is risky,Insufficient information disclosure,Therefore, it is often in the form of non-public fundraising.。

Most of those who set up PE are groups with a small number of investors.,individual or family,The number of investors is limited to 15 people,The investment projects or assets held are relatively fixed and stable.。HedgeFund,Financial futures and financial options are called financial derivatives(financialderivatives),They are often used in financial markets as hedging、means of avoiding risks。

over time,in financial markets,Some fund organizations use financial derivatives to adopt a variety of profit-oriented investment strategies.,These funds are called hedge funds。

at present,Hedge funds have long lost the connotation of risk hedging,Just the opposite,It is now widely believed that hedge funds are actually based on investment theories and extremely complex financial market operating techniques.,Make full use of the leverage of various financial derivatives,Take high risks、Pursue high-yield investment models。

Because HedgeFund has no upper limit on the number of investors,Therefore, you need to apply for a registered fund(RegisteredFund)Convenient for investment and management。

six、Offshore fund maintenance

费用以简单的PE为例,Charges include:一年的政府费用顾问费用基金管理费用及费用如果是HedgeFund费用比简单的PE高

If you still want to know more about this aspect,Welcome anytime!


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Huang Jiamin

Huang Jiamin has more than 10 Years of experience in cross-border fund structuring and compliance consulting。She has advised private equity funds、open-end fund、Professional investment funds (PIF) Provide integrated services to clients with PFLP structure,Including fund establishment planning、Drafting of fund charter、Regulatory document preparation、Anti-Money Laundering Policy (AML) Establishment of customer due diligence (CDD) system。Her views on Cayman and BVI fund regulations、In-depth understanding of economic substance requirements and jurisdictional regulations,Can help wealth management companies and family offices design fund compliance structures that comply with global rules。

Areas of expertise:private equity funds、PIF/PFLP structure、AML/CDD system establishment、Cayman/BVI Fund Regulations、Economic substance requirements。

Previous institutions:Cayman/Hong Kong Fund Services Agency & International legal advisory team

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