Many sponsors looking to launch a new offshore fund will have well-defined ideas about the common terms that should apply with respect to the pooling of investments and liquidity rights for investors. However, for those clients looking for something more bespoke, two of the more common requests we see in terms of fund structuring options are for:
These can be described as funds with a mandate that allows them to pursue two or more different strategies (or to acquire two or more different investments or buckets of investments) within a single fund vehicle that are to be treated as distinct and separate from one another, such that investors in a given strategy only participate economically in that particular strategy and not any other strategies (or investment holdings) of the fund.
These are funds which hold a mix of both liquid and illiquid investments and seek to combine elements of fund terms customary for both hedge funds (for liquid investments) and private equity funds (for illiquid investments) within a single fund vehicle.
Such alternative strategies can present certain unique issues and challenges from a structuring perspective but the British Virgin Islands (“BVI”) fund industry is very well adapted to cater for this given the jurisdiction’s flexible legal regime and unique set of well-regarded, innovative and cost-competitive fund products.
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BVI Multi-Class Funds