Offshore fund vehicles are suitable for hedge and private equity fund managers seeking to attract non-US and/or tax-exempt US investors. In conjunction with offshore counsel, Riveles Law Group has broad experience establishing offshore funds in various structural variations, including mini-master, master feeder, parallel, and segregated portfolio company. With a tax neutral environment, no regulatory restrictions on investment policies or strategies, comparably low start-up and ongoing fees and costs, and no requirement to appoint local directors, functionaries, or auditors, the BVI is the second most popular offshore jurisdiction for hedge fund formation. With several types to choose from, RLG regularly counsels clients on selecting the best BVI fund structure for their experience level and investment strategy.
Partnering with offshore counsel, our attorneys assist in the formation and operation of closed- and open-ended funds in the BVI, including professional, private, and public funds. For new and smaller managers with fewer than 20 investors seeking to avoid the initial use of an administrator and/or auditor, RLG establishes incubator and approved funds to allow our clients to build an investment strategy track record over two years before conversion into a professional or private fund, or in the case of an incubator, an approved fund. We also assist managers from around the world in taking advantage of the recently established “approved manager” regime.
Our BVI fund formation services include:
- Drafting the special Memorandum and Articles of Association for the fund.
- Drafting the Offering Memorandum providing disclosures to fund investors regarding fund terms such as minimum investment amount, liquidity provisions, investment strategy, biographies of fund directors, and risks involved in an investment.
- Obtaining the Registered Agent and Registered Office for the fund.
- Incorporation of the fund company as a BVI Business Company.
- Payment of standard government fees at incorporation of the fund company.
- Drafting the first minutes, appointment of directors, and primary corporate documents.
- Obtaining duplicate Certificate of Incorporation (required for licensing purposes).
- Drafting the Investment Management agreement.
- Drafting the Licence Application for recognition as Professional or Private Fund.
- Submitting the Licence Application along with the accompanying documents.
- Payment of Mutual Fund Application fee and Recognition fee to BVI FSC.
- Following up on the licence Application and liaising with the Financial Services Commission.
- Providing introductions to fund functionaries such as administrators, custodians, auditors, bankers and brokers.
- Obtaining a CUSIP/ISIN number (if necessary).
Our relationships in the BVI allow us to offer flat fee, all inclusive pricing to our clients that include the costs of US and BVI counsel. Read our comprehensive overview of Investment Funds in the BVI to learn more about the types and structure of BVI funds.<< Forex Funds Cayman Island Funds >>