{"product_id":"funds-9781118790403","title":"Funds","description":"\u003cb\u003eBook Synopsis\u003c\/b\u003e\u003cbr\u003eInvestment funds are the driving force behind much global private economic development, and yet the world of investment funds can be complex and confusing.\u003cbr\u003e\u003cbr\u003e\u003cb\u003eTable of Contents\u003c\/b\u003e\u003cbr\u003e\u003cb\u003e1 Introduction to Funds 1\u003c\/b\u003e \u003cp\u003e1.1 Why this book? 1\u003c\/p\u003e \u003cp\u003e1.2 Alternative assets 1\u003c\/p\u003e \u003cp\u003e1.3 What is a fund? 2\u003c\/p\u003e \u003cp\u003e1.4 Categories of funds 3\u003c\/p\u003e \u003cp\u003e1.4.1 Ways to categorize 3\u003c\/p\u003e \u003cp\u003e1.5 Choosing a vehicle 5\u003c\/p\u003e \u003cp\u003e1.6 Open-ended and closed-ended fund structures 6\u003c\/p\u003e \u003cp\u003e1.6.1 Introduction 6\u003c\/p\u003e \u003cp\u003e1.6.2 Impact of the credit crisis 7\u003c\/p\u003e \u003cp\u003e1.7 Contents of this book 8\u003c\/p\u003e \u003cp\u003e\u003cb\u003e2 Limited Partnerships – Use in Alternative Asset Funds 9\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e2.1 Introduction to limited partnerships 9\u003c\/p\u003e \u003cp\u003e2.1.1 Suitability of limited partnerships for alternative asset funds 9\u003c\/p\u003e \u003cp\u003e2.1.2 Benefits of limited partnerships 9\u003c\/p\u003e \u003cp\u003e2.1.3 Types of limited partnerships 9\u003c\/p\u003e \u003cp\u003e2.2 Structure of limited partnership funds 9\u003c\/p\u003e \u003cp\u003e2.2.1 Role of general and limited partners 9\u003c\/p\u003e \u003cp\u003e2.2.2 Management and operation of the partnership 10\u003c\/p\u003e \u003cp\u003e2.2.3 Remuneration 11\u003c\/p\u003e \u003cp\u003e2.2.4 UK limited partnerships 11\u003c\/p\u003e \u003cp\u003e2.2.5 US limited partnerships 13\u003c\/p\u003e \u003cp\u003e2.2.6 Parallel funds 15\u003c\/p\u003e \u003cp\u003e2.2.7 Master\/feeders 17\u003c\/p\u003e \u003cp\u003e2.3 Establishment of the fund 18\u003c\/p\u003e \u003cp\u003e2.3.1 Process 18\u003c\/p\u003e \u003cp\u003e2.3.2 Documentation 19\u003c\/p\u003e \u003cp\u003e2.4 Investing 20\u003c\/p\u003e \u003cp\u003e2.4.1 Investment objective and returns 20\u003c\/p\u003e \u003cp\u003e2.4.2 Investment strategy 20\u003c\/p\u003e \u003cp\u003e2.4.3 Investment period 20\u003c\/p\u003e \u003cp\u003e2.4.4 Term 21\u003c\/p\u003e \u003cp\u003e2.4.5 Fund borrowing 21\u003c\/p\u003e \u003cp\u003e2.4.6 Investment restrictions 21\u003c\/p\u003e \u003cp\u003e2.5 Commitments by investors 22\u003c\/p\u003e \u003cp\u003e2.5.1 Commitments\/drawdowns 22\u003c\/p\u003e \u003cp\u003e2.5.2 Recycling 22\u003c\/p\u003e \u003cp\u003e2.5.3 Default 23\u003c\/p\u003e \u003cp\u003e2.5.4 Management team’s commitment 24\u003c\/p\u003e \u003cp\u003e2.5.5 Closings\/equalization 24\u003c\/p\u003e \u003cp\u003e2.5.6 Investor clawback 25\u003c\/p\u003e \u003cp\u003e2.5.7 Withdrawals 25\u003c\/p\u003e \u003cp\u003e2.5.8 Transfers 25\u003c\/p\u003e \u003cp\u003e2.6 Economics 26\u003c\/p\u003e \u003cp\u003e2.6.1 Management fee\/priority profit share 26\u003c\/p\u003e \u003cp\u003e2.6.2 Distributions\/carried interest 26\u003c\/p\u003e \u003cp\u003e2.6.3 Carried interest, escrow and clawback 29\u003c\/p\u003e \u003cp\u003e2.6.4 Carried interest structure 30\u003c\/p\u003e \u003cp\u003e2.6.5 Expenses 30\u003c\/p\u003e \u003cp\u003e2.6.6 Transactional or monitoring fees 30\u003c\/p\u003e \u003cp\u003e2.7 Governance 31\u003c\/p\u003e \u003cp\u003e2.7.1 Removal of the general partner\/manager 31\u003c\/p\u003e \u003cp\u003e2.7.2 Key person 32\u003c\/p\u003e \u003cp\u003e2.7.3 Advisory committee 33\u003c\/p\u003e \u003cp\u003e2.7.4 Reports and meetings 33\u003c\/p\u003e \u003cp\u003e2.8 Some conclusions 33\u003c\/p\u003e \u003cp\u003e\u003cb\u003e3 Hedge Funds 35\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e3.1 Introduction 35\u003c\/p\u003e \u003cp\u003e3.2 Types of hedge fund strategies 35\u003c\/p\u003e \u003cp\u003e3.2.1 Market neutral or directional 35\u003c\/p\u003e \u003cp\u003e3.2.2 Discretionary or systematic 35\u003c\/p\u003e \u003cp\u003e3.2.3 Strategy implementation and instruments 36\u003c\/p\u003e \u003cp\u003e3.2.4 Typical strategies 36\u003c\/p\u003e \u003cp\u003e3.3 Where are hedge funds located and what are the tax drivers? 39\u003c\/p\u003e \u003cp\u003e3.3.1 Cayman Islands 39\u003c\/p\u003e \u003cp\u003e3.3.2 British Virgin Islands 40\u003c\/p\u003e \u003cp\u003e3.3.3 Jersey 41\u003c\/p\u003e \u003cp\u003e3.4 Hedge fund investors 42\u003c\/p\u003e \u003cp\u003e3.4.1 Seed and cornerstone investors 42\u003c\/p\u003e \u003cp\u003e3.4.2 Incubator funds 42\u003c\/p\u003e \u003cp\u003e3.4.3 Fund of funds 42\u003c\/p\u003e \u003cp\u003e3.4.4 Individual investors and family offices 43\u003c\/p\u003e \u003cp\u003e3.4.5 Platforms 43\u003c\/p\u003e \u003cp\u003e3.5 Principal vehicles 43\u003c\/p\u003e \u003cp\u003e3.5.1 The fund vehicle 43\u003c\/p\u003e \u003cp\u003e3.5.2 Offshore management vehicle 43\u003c\/p\u003e \u003cp\u003e3.5.3 Onshore advisory entity 44\u003c\/p\u003e \u003cp\u003e3.6 Types of hedge fund structures 44\u003c\/p\u003e \u003cp\u003e3.6.1 Simple hedge fund 44\u003c\/p\u003e \u003cp\u003e3.6.2 The master\/feeder structure 45\u003c\/p\u003e \u003cp\u003e3.6.3 EU UCITS-compliant funds 47\u003c\/p\u003e \u003cp\u003e3.7 Establishment of the fund 50\u003c\/p\u003e \u003cp\u003e3.7.1 Process 50\u003c\/p\u003e \u003cp\u003e3.7.2 Documentation 51\u003c\/p\u003e \u003cp\u003e3.8 Management and performance fees 52\u003c\/p\u003e \u003cp\u003e3.8.1 Management fee 52\u003c\/p\u003e \u003cp\u003e3.8.2 Performance fee 52\u003c\/p\u003e \u003cp\u003e3.8.3 Hurdle rate 52\u003c\/p\u003e \u003cp\u003e3.8.4 High water mark 53\u003c\/p\u003e \u003cp\u003e3.8.5 Redemption fees 53\u003c\/p\u003e \u003cp\u003e3.9 Other key terms 53\u003c\/p\u003e \u003cp\u003e3.9.1 Liquidity 53\u003c\/p\u003e \u003cp\u003e3.9.2 Lock-ups 53\u003c\/p\u003e \u003cp\u003e3.9.3 Gating provisions 54\u003c\/p\u003e \u003cp\u003e3.9.4 Capacity 54\u003c\/p\u003e \u003cp\u003e3.9.5 Early stage or seed investors 54\u003c\/p\u003e \u003cp\u003e3.9.6 Key man 54\u003c\/p\u003e \u003cp\u003e3.9.7 Equalization 54\u003c\/p\u003e \u003cp\u003e3.10 The use of side pockets 55\u003c\/p\u003e \u003cp\u003e3.11 Regulation 55\u003c\/p\u003e \u003cp\u003e3.12 Some conclusions 56\u003c\/p\u003e \u003cp\u003e\u003cb\u003e4 Structural Variants and Alternative Structures to Chapters 2 and 3 57\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e4.1 Introduction 57\u003c\/p\u003e \u003cp\u003e4.2 Pledge funds 57\u003c\/p\u003e \u003cp\u003e4.3 ‘Combo’ fund structure 58\u003c\/p\u003e \u003cp\u003e4.3.1 Introduction 58\u003c\/p\u003e \u003cp\u003e4.3.2 The blind-pool or committed capital fund 58\u003c\/p\u003e \u003cp\u003e4.3.3 The pledge fund 58\u003c\/p\u003e \u003cp\u003e4.3.4 The combined (or ‘combo’) fund 59\u003c\/p\u003e \u003cp\u003e4.4 Investment clubs 60\u003c\/p\u003e \u003cp\u003e4.5 Fund-lites 60\u003c\/p\u003e \u003cp\u003e4.5.1 Introduction 60\u003c\/p\u003e \u003cp\u003e4.5.2 Shorter life of the fund 61\u003c\/p\u003e \u003cp\u003e4.5.3 Reduced scope of the investment objective 61\u003c\/p\u003e \u003cp\u003e4.5.4 Fees 61\u003c\/p\u003e \u003cp\u003e4.5.5 No key man clause 61\u003c\/p\u003e \u003cp\u003e4.5.6 No escrow or clawback for carry 61\u003c\/p\u003e \u003cp\u003e4.5.7 No re-investment of realized funds 62\u003c\/p\u003e \u003cp\u003e4.5.8 No restrictions on future funds 62\u003c\/p\u003e \u003cp\u003e4.5.9 Fund-lites: some conclusions 62\u003c\/p\u003e \u003cp\u003e4.6 Top-up, bridge and side pockets 63\u003c\/p\u003e \u003cp\u003e4.7 Managed accounts 63\u003c\/p\u003e \u003cp\u003e4.7.1 Introduction 63\u003c\/p\u003e \u003cp\u003e4.7.2 Comparison with funds 64\u003c\/p\u003e \u003cp\u003e4.7.3 Advantages 65\u003c\/p\u003e \u003cp\u003e4.7.4 Disadvantages 65\u003c\/p\u003e \u003cp\u003e4.7.5 Some conclusions 66\u003c\/p\u003e \u003cp\u003e4.8 Corporate vehicles 66\u003c\/p\u003e \u003cp\u003e4.9 Special purpose acquisition companies (SPACs) or cash shells 67\u003c\/p\u003e \u003cp\u003e4.10 UK enterprise investment scheme 68\u003c\/p\u003e \u003cp\u003e4.10.1 Introduction 68\u003c\/p\u003e \u003cp\u003e4.10.2 Legislation 68\u003c\/p\u003e \u003cp\u003e4.10.3 Conditions 69\u003c\/p\u003e \u003cp\u003e4.10.4 EIS funds 71\u003c\/p\u003e \u003cp\u003e4.10.5 Tax 71\u003c\/p\u003e \u003cp\u003e4.11 UK unit trusts 72\u003c\/p\u003e \u003cp\u003e4.11.1 Introduction 72\u003c\/p\u003e \u003cp\u003e4.11.2 Legislation 72\u003c\/p\u003e \u003cp\u003e4.11.3 Authorized unit trusts 72\u003c\/p\u003e \u003cp\u003e4.11.4 Undertakings for collective investment in transferable securities 73\u003c\/p\u003e \u003cp\u003e4.11.5 Pricing 74\u003c\/p\u003e \u003cp\u003e4.11.6 Risk 74\u003c\/p\u003e \u003cp\u003e4.11.7 Fees 74\u003c\/p\u003e \u003cp\u003e4.11.8 Taxation of unit trusts 74\u003c\/p\u003e \u003cp\u003e4.12 Offshore alternatives 76\u003c\/p\u003e \u003cp\u003e4.12.1 Unit trusts 76\u003c\/p\u003e \u003cp\u003e4.12.2 Cell companies 76\u003c\/p\u003e \u003cp\u003e4.13 Jersey property unit trusts 76\u003c\/p\u003e \u003cp\u003e4.13.1 Introduction 76\u003c\/p\u003e \u003cp\u003e4.13.2 Jersey FS law 77\u003c\/p\u003e \u003cp\u003e4.13.3 Types of JPUT 77\u003c\/p\u003e \u003cp\u003e4.13.4 Some JPUT conclusions 78\u003c\/p\u003e \u003cp\u003e4.14 Some conclusions 79\u003c\/p\u003e \u003cp\u003e\u003cb\u003e5 Investment-specific Strategies 81\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e5.1 Introduction 81\u003c\/p\u003e \u003cp\u003e5.2 Private equity\/venture capital 81\u003c\/p\u003e \u003cp\u003e5.2.1 Introduction 81\u003c\/p\u003e \u003cp\u003e5.2.2 Strategies 81\u003c\/p\u003e \u003cp\u003e5.3 Public equities 82\u003c\/p\u003e \u003cp\u003e5.3.1 Introduction 82\u003c\/p\u003e \u003cp\u003e5.3.2 Strategies 82\u003c\/p\u003e \u003cp\u003e5.4 Bonds 83\u003c\/p\u003e \u003cp\u003e5.5 Credit funds 83\u003c\/p\u003e \u003cp\u003e5.5.1 Introduction 83\u003c\/p\u003e \u003cp\u003e5.5.2 Senior debt 83\u003c\/p\u003e \u003cp\u003e5.5.3 Mezzanine debt 84\u003c\/p\u003e \u003cp\u003e5.5.4 Bonds 85\u003c\/p\u003e \u003cp\u003e5.5.5 Asset-backed securities (ABSs), collateralized loan obligations (CLOs) and collateralized debt obligations (CDOs) 85\u003c\/p\u003e \u003cp\u003e5.5.6 Fund diversity 85\u003c\/p\u003e \u003cp\u003e5.6 Shadow banking 86\u003c\/p\u003e \u003cp\u003e5.6.1 Introduction 86\u003c\/p\u003e \u003cp\u003e5.6.2 SIVs\/conduits 86\u003c\/p\u003e \u003cp\u003e5.6.3 Perceived risks 87\u003c\/p\u003e \u003cp\u003e5.6.4 Proposed added US regulation 88\u003c\/p\u003e \u003cp\u003e5.7 Real estate and infrastructure 89\u003c\/p\u003e \u003cp\u003e5.7.1 Introduction 89\u003c\/p\u003e \u003cp\u003e5.7.2 Real estate strategies 89\u003c\/p\u003e \u003cp\u003e5.7.3 Infrastructure strategies 90\u003c\/p\u003e \u003cp\u003e5.8 Energy funds 91\u003c\/p\u003e \u003cp\u003e5.8.1 Old energy 91\u003c\/p\u003e \u003cp\u003e5.8.2 New energy 91\u003c\/p\u003e \u003cp\u003e5.9 Commodities funds 92\u003c\/p\u003e \u003cp\u003e5.9.1 Introduction 92\u003c\/p\u003e \u003cp\u003e5.9.2 Agriculture 92\u003c\/p\u003e \u003cp\u003e5.9.3 Metals 92\u003c\/p\u003e \u003cp\u003e5.9.4 Energy 93\u003c\/p\u003e \u003cp\u003e5.9.5 Direct or indirect investment 93\u003c\/p\u003e \u003cp\u003e5.9.6 Regulation 94\u003c\/p\u003e \u003cp\u003e5.10 Social impact funds 95\u003c\/p\u003e \u003cp\u003e5.10.1 Introduction 95\u003c\/p\u003e \u003cp\u003e5.10.2 The rewards of social impact funds 95\u003c\/p\u003e \u003cp\u003e5.10.3 The risks of social impact funds 96\u003c\/p\u003e \u003cp\u003e5.11 Secondaries funds 96\u003c\/p\u003e \u003cp\u003e5.11.1 Introduction 96\u003c\/p\u003e \u003cp\u003e5.11.2 Key legal points 97\u003c\/p\u003e \u003cp\u003e5.11.3 Aspects of secondaries investment 98\u003c\/p\u003e \u003cp\u003e5.11.4 Some criticism of secondaries investment 98\u003c\/p\u003e \u003cp\u003e5.12 Derivatives funds 99\u003c\/p\u003e \u003cp\u003e5.12.1 Introduction 99\u003c\/p\u003e \u003cp\u003e5.12.2 Issues around derivatives 99\u003c\/p\u003e \u003cp\u003e5.12.3 Specific regulation 100\u003c\/p\u003e \u003cp\u003e5.13 Currency funds 100\u003c\/p\u003e \u003cp\u003e5.13.1 Introduction 100\u003c\/p\u003e \u003cp\u003e5.13.2 Issues around currency funds 101\u003c\/p\u003e \u003cp\u003e5.13.3 Specific regulation 101\u003c\/p\u003e \u003cp\u003e5.14 Hedge fund strategies 101\u003c\/p\u003e \u003cp\u003e5.15 Some conclusions 101\u003c\/p\u003e \u003cp\u003e\u003cb\u003e6 Stock Markets and Listed Funds 103\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e6.1 Introduction 103\u003c\/p\u003e \u003cp\u003e6.2 Listings of private funds 103\u003c\/p\u003e \u003cp\u003e6.2.1 Introduction 104\u003c\/p\u003e \u003cp\u003e6.2.2 Direct funds 104\u003c\/p\u003e \u003cp\u003e6.2.3 Feeder funds 104\u003c\/p\u003e \u003cp\u003e6.2.4 Taxation 104\u003c\/p\u003e \u003cp\u003e6.3 UK markets and listed fund structures 105\u003c\/p\u003e \u003cp\u003e6.3.1 Background 105\u003c\/p\u003e \u003cp\u003e6.3.2 The London markets 105\u003c\/p\u003e \u003cp\u003e6.3.3 Vehicles in London appropriate for listing investment funds 106\u003c\/p\u003e \u003cp\u003e6.3.4 Obtaining a London listing – Main Market and AIM 121\u003c\/p\u003e \u003cp\u003e6.4 New York 121\u003c\/p\u003e \u003cp\u003e6.4.1 Background 121\u003c\/p\u003e \u003cp\u003e6.4.2 The New York markets 121\u003c\/p\u003e \u003cp\u003e6.4.3 Vehicles in New York appropriate for listing investment funds 122\u003c\/p\u003e \u003cp\u003e6.5 Europe 128\u003c\/p\u003e \u003cp\u003e6.5.1 The European markets 128\u003c\/p\u003e \u003cp\u003e6.5.2 European exchange traded funds (ETFs) 128\u003c\/p\u003e \u003cp\u003e6.6 Alternative offshore stock exchanges 131\u003c\/p\u003e \u003cp\u003e6.7 Some conclusions 132\u003c\/p\u003e \u003cp\u003e7 Principal ‘Offshore’ Fund Locations 133\u003c\/p\u003e \u003cp\u003e\u003cb\u003e7.1 What are the characteristics of an attractive investment fund location? 133\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e(A) OFFSHORE CROWN DEPENDENCIES 134\u003c\/p\u003e \u003cp\u003e7.2 The Channel Islands 134\u003c\/p\u003e \u003cp\u003e7.2.1 Background 134\u003c\/p\u003e \u003cp\u003e7.2.2 Common structures 134\u003c\/p\u003e \u003cp\u003e7.2.3 Regulation of the fund 136\u003c\/p\u003e \u003cp\u003e7.2.4 Stock exchange 138\u003c\/p\u003e \u003cp\u003e7.2.5 Taxation 138\u003c\/p\u003e \u003cp\u003e7.3 The Isle of Man 139\u003c\/p\u003e \u003cp\u003e7.3.1 Background 139\u003c\/p\u003e \u003cp\u003e7.3.2 Common structures 139\u003c\/p\u003e \u003cp\u003e7.3.3 Regulation 140\u003c\/p\u003e \u003cp\u003e7.3.4 Taxation 141\u003c\/p\u003e \u003cp\u003e7.4 Other Channel Islands 142\u003c\/p\u003e \u003cp\u003e7.4.1 Alderney 142\u003c\/p\u003e \u003cp\u003e7.4.2 Isle of Sark 142\u003c\/p\u003e \u003cp\u003e7.4.3 Herm 142\u003c\/p\u003e \u003cp\u003e(B) SPECIFICALLY REGULATED EU FUND JURISDICTIONS 142\u003c\/p\u003e \u003cp\u003e7.5 Ireland 142\u003c\/p\u003e \u003cp\u003e7.5.1 Background 142\u003c\/p\u003e \u003cp\u003e7.5.2 Common structures for funds 142\u003c\/p\u003e \u003cp\u003e7.5.3 Regulation 143\u003c\/p\u003e \u003cp\u003e7.5.4 Stock exchange 144\u003c\/p\u003e \u003cp\u003e7.5.5 Taxation 144\u003c\/p\u003e \u003cp\u003e7.6 Luxembourg 144\u003c\/p\u003e \u003cp\u003e7.6.1 Background 144\u003c\/p\u003e \u003cp\u003e7.6.2 Common structures 144\u003c\/p\u003e \u003cp\u003e7.6.3 Regulation 146\u003c\/p\u003e \u003cp\u003e7.6.4 Stock exchange 147\u003c\/p\u003e \u003cp\u003e7.6.5 Taxation 147\u003c\/p\u003e \u003cp\u003e7.7 Malta 147\u003c\/p\u003e \u003cp\u003e7.7.1 Background 147\u003c\/p\u003e \u003cp\u003e7.7.2 Common structures 148\u003c\/p\u003e \u003cp\u003e7.7.3 Regulation 149\u003c\/p\u003e \u003cp\u003e7.7.4 Stock exchange 150\u003c\/p\u003e \u003cp\u003e7.7.5 Taxation 150\u003c\/p\u003e \u003cp\u003e7.8 Cyprus 150\u003c\/p\u003e \u003cp\u003e7.8.1 Background 150\u003c\/p\u003e \u003cp\u003e7.8.2 Common structures 151\u003c\/p\u003e \u003cp\u003e7.8.3 Regulation 151\u003c\/p\u003e \u003cp\u003e7.8.4 Stock exchange 152\u003c\/p\u003e \u003cp\u003e7.8.5 Taxation 152\u003c\/p\u003e \u003cp\u003e7.9 Gibraltar 152\u003c\/p\u003e \u003cp\u003e7.9.1 Background 152\u003c\/p\u003e \u003cp\u003e7.9.2 Common structures 153\u003c\/p\u003e \u003cp\u003e7.9.3 Regulation 153\u003c\/p\u003e \u003cp\u003e7.9.5 Taxation 155\u003c\/p\u003e \u003cp\u003e(C) REST OF EUROPE 156\u003c\/p\u003e \u003cp\u003e7.10 The Netherlands 156\u003c\/p\u003e \u003cp\u003e7.10.1 Background 156\u003c\/p\u003e \u003cp\u003e7.10.2 Common structures 156\u003c\/p\u003e \u003cp\u003e7.10.3 Regulation 157\u003c\/p\u003e \u003cp\u003e7.10.4 Stock exchange 157\u003c\/p\u003e \u003cp\u003e7.10.5 Taxation 157\u003c\/p\u003e \u003cp\u003e7.11 Switzerland 158\u003c\/p\u003e \u003cp\u003e7.11.1 Background 158\u003c\/p\u003e \u003cp\u003e7.11.2 Common structures 158\u003c\/p\u003e \u003cp\u003e7.11.3 Regulation 158\u003c\/p\u003e \u003cp\u003e7.11.4 Stock exchange 159\u003c\/p\u003e \u003cp\u003e7.11.5 Taxation 159\u003c\/p\u003e \u003cp\u003e(D) CARIBBEAN AND ATLANTIC 159\u003c\/p\u003e \u003cp\u003e7.12 The Cayman Islands 159\u003c\/p\u003e \u003cp\u003e7.12.1 Background 159\u003c\/p\u003e \u003cp\u003e7.12.2 Common structures 159\u003c\/p\u003e \u003cp\u003e7.12.3 Regulation 160\u003c\/p\u003e \u003cp\u003e7.12.4 Stock exchange 161\u003c\/p\u003e \u003cp\u003e7.12.5 Taxation 162\u003c\/p\u003e \u003cp\u003e7.13 The British Virgin Islands 162\u003c\/p\u003e \u003cp\u003e7.13.1 Background 162\u003c\/p\u003e \u003cp\u003e7.13.2 Common structures 162\u003c\/p\u003e \u003cp\u003e7.13.3 Regulation 163\u003c\/p\u003e \u003cp\u003e7.13.4 Taxation 163\u003c\/p\u003e \u003cp\u003e7.14 Bermuda 164\u003c\/p\u003e \u003cp\u003e7.14.1 Background 164\u003c\/p\u003e \u003cp\u003e7.14.2 Common structures 164\u003c\/p\u003e \u003cp\u003e7.14.3 Regulation 165\u003c\/p\u003e \u003cp\u003e7.14.4 Ongoing reporting 165\u003c\/p\u003e \u003cp\u003e7.14.5 Funds outside regulation 166\u003c\/p\u003e \u003cp\u003e7.14.6 Segregated Accounts Companies 166\u003c\/p\u003e \u003cp\u003e7.14.7 Stock market 167\u003c\/p\u003e \u003cp\u003e7.14.8 Taxation 167\u003c\/p\u003e \u003cp\u003e(E) ASIA 168\u003c\/p\u003e \u003cp\u003e7.15 Hong Kong 168\u003c\/p\u003e \u003cp\u003e7.15.1 Background 168\u003c\/p\u003e \u003cp\u003e7.15.2 Common structures 168\u003c\/p\u003e \u003cp\u003e7.15.3 Regulation 169\u003c\/p\u003e \u003cp\u003e7.15.4 Stock exchange 169\u003c\/p\u003e \u003cp\u003e7.15.5 Taxation 169\u003c\/p\u003e \u003cp\u003e7.16 Singapore 170\u003c\/p\u003e \u003cp\u003e7.16.1 Background 170\u003c\/p\u003e \u003cp\u003e7.16.2 Common structures 170\u003c\/p\u003e \u003cp\u003e7.16.3 Regulation 171\u003c\/p\u003e \u003cp\u003e7.16.4 Stock exchange 171\u003c\/p\u003e \u003cp\u003e7.16.5 Taxation 171\u003c\/p\u003e \u003cp\u003e7.17 Dubai 172\u003c\/p\u003e \u003cp\u003e7.17.1 Background 172\u003c\/p\u003e \u003cp\u003e7.17.2 Common structures 172\u003c\/p\u003e \u003cp\u003e7.17.3 Regulation 172\u003c\/p\u003e \u003cp\u003e7.17.4 Stock exchange 173\u003c\/p\u003e \u003cp\u003e7.17.5 Taxation 173\u003c\/p\u003e \u003cp\u003e7.18 Mauritius 173\u003c\/p\u003e \u003cp\u003e7.18.1 Background 173\u003c\/p\u003e \u003cp\u003e7.18.2 Common structures 173\u003c\/p\u003e \u003cp\u003e7.18.3 Regulation 174\u003c\/p\u003e \u003cp\u003e7.18.4 Stock exchange 175\u003c\/p\u003e \u003cp\u003e7.18.5 Taxation 175\u003c\/p\u003e \u003cp\u003e7.19 Some conclusions 175\u003c\/p\u003e \u003cp\u003e\u003cb\u003e8 Principal ‘Onshore’ Fund Locations 177\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e8.1 Introduction 177\u003c\/p\u003e \u003cp\u003e(A) ASIA 178\u003c\/p\u003e \u003cp\u003e8.2 People’s Republic of China 178\u003c\/p\u003e \u003cp\u003e8.2.1 Background 178\u003c\/p\u003e \u003cp\u003e8.2.2 Common structures 178\u003c\/p\u003e \u003cp\u003e8.2.3 Regulation 180\u003c\/p\u003e \u003cp\u003e8.2.4 Stock exchange 181\u003c\/p\u003e \u003cp\u003e8.3 Japan 182\u003c\/p\u003e \u003cp\u003e8.3.1 Background 182\u003c\/p\u003e \u003cp\u003e8.3.2 Common structures 182\u003c\/p\u003e \u003cp\u003e8.3.3 Regulation 183\u003c\/p\u003e \u003cp\u003e8.3.4 Stock exchange 184\u003c\/p\u003e \u003cp\u003e8.4 India 184\u003c\/p\u003e \u003cp\u003e8.4.1 Background 184\u003c\/p\u003e \u003cp\u003e8.4.2 Common structures 184\u003c\/p\u003e \u003cp\u003e8.4.3 Regulation 185\u003c\/p\u003e \u003cp\u003e8.4.4 Stock exchange 186\u003c\/p\u003e \u003cp\u003e(B) THE AMERICAS 186\u003c\/p\u003e \u003cp\u003e8.5 Canada 186\u003c\/p\u003e \u003cp\u003e8.5.1 Background 186\u003c\/p\u003e \u003cp\u003e8.5.2 Common structures 187\u003c\/p\u003e \u003cp\u003e8.5.3 Regulation 188\u003c\/p\u003e \u003cp\u003e8.5.4 Stock exchange 189\u003c\/p\u003e \u003cp\u003e8.6 The Federative Republic of Brazil 189\u003c\/p\u003e \u003cp\u003e8.6.1 Background 189\u003c\/p\u003e \u003cp\u003e8.6.2 Common structures 189\u003c\/p\u003e \u003cp\u003e8.6.3 Regulation 190\u003c\/p\u003e \u003cp\u003e8.6.4 Stock exchange 190\u003c\/p\u003e \u003cp\u003e(C) ONSHORE EUROPEAN JURISDICTIONS 191\u003c\/p\u003e \u003cp\u003e8.7 Russian Federation 191\u003c\/p\u003e \u003cp\u003e8.7.1 Background 191\u003c\/p\u003e \u003cp\u003e8.7.2 Common structures 191\u003c\/p\u003e \u003cp\u003e8.7.3 Regulation 193\u003c\/p\u003e \u003cp\u003e8.7.4 Stock exchange 193\u003c\/p\u003e \u003cp\u003e8.8 Germany 193\u003c\/p\u003e \u003cp\u003e8.8.1 Background 193\u003c\/p\u003e \u003cp\u003e8.8.2 Common structures 194\u003c\/p\u003e \u003cp\u003e8.8.3 Regulation 194\u003c\/p\u003e \u003cp\u003e8.8.4 Stock exchange 197\u003c\/p\u003e \u003cp\u003e8.9 France 198\u003c\/p\u003e \u003cp\u003e8.9.1 Background 198\u003c\/p\u003e \u003cp\u003e8.9.2 Common structures 198\u003c\/p\u003e \u003cp\u003e8.9.3 Regulation 199\u003c\/p\u003e \u003cp\u003e8.9.4 Stock exchange 200\u003c\/p\u003e \u003cp\u003e(D) COMMONWEALTH OF AUSTRALIA 200\u003c\/p\u003e \u003cp\u003e8.10.1 Background 200\u003c\/p\u003e \u003cp\u003e8.10.2 Common structures 201\u003c\/p\u003e \u003cp\u003e8.10.3 Regulation 202\u003c\/p\u003e \u003cp\u003e8.10.4 Stock exchange 203\u003c\/p\u003e \u003cp\u003e(E) ISLAMIC INVESTMENT FUNDS 203\u003c\/p\u003e \u003cp\u003e8.11.1 Background 203\u003c\/p\u003e \u003cp\u003e8.11.2 Key principles of Sharia’a law 204\u003c\/p\u003e \u003cp\u003e8.11.4 Parties to an Islamic investment fund 206\u003c\/p\u003e \u003cp\u003e8.11.5 Stock exchange 207\u003c\/p\u003e \u003cp\u003e\u003cb\u003e9 Sovereign Wealth Funds, State-sponsored Funds, Pension and Superannuation Schemes and Charities 209\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e9.1 Introduction 209\u003c\/p\u003e \u003cp\u003e9.2 Sovereign wealth funds (SWFs) 209\u003c\/p\u003e \u003cp\u003e9.2.1 Definition of sovereign wealth fund 209\u003c\/p\u003e \u003cp\u003e9.2.2 Source of sovereign wealth funds 210\u003c\/p\u003e \u003cp\u003e9.2.3 Types of SWF investment vehicles 210\u003c\/p\u003e \u003cp\u003e9.2.4 SWF investment strategies 211\u003c\/p\u003e \u003cp\u003e9.2.5 Taxation of SWFs 212\u003c\/p\u003e \u003cp\u003e9.2.6 Transparency of an SWF 213\u003c\/p\u003e \u003cp\u003e9.2.7 Key regulation 214\u003c\/p\u003e \u003cp\u003e9.3 State-sponsored funds 215\u003c\/p\u003e \u003cp\u003e9.3.1 Introduction 215\u003c\/p\u003e \u003cp\u003e9.3.2 UK 215\u003c\/p\u003e \u003cp\u003e9.3.3 Europe 217\u003c\/p\u003e \u003cp\u003e9.3.4 The US 218\u003c\/p\u003e \u003cp\u003e9.4 Pensions 219\u003c\/p\u003e \u003cp\u003e9.4.1 What is a pension? 219\u003c\/p\u003e \u003cp\u003e9.4.2 UK pensions 219\u003c\/p\u003e \u003cp\u003e9.4.3 European pensions 221\u003c\/p\u003e \u003cp\u003e9.4.4 France 222\u003c\/p\u003e \u003cp\u003e9.4.5 Germany 222\u003c\/p\u003e \u003cp\u003e9.4.6 US pensions 224\u003c\/p\u003e \u003cp\u003e9.4.7 Australia 227\u003c\/p\u003e \u003cp\u003e9.4.8 Pension funds as an investor 229\u003c\/p\u003e \u003cp\u003e9.5 Charities 230\u003c\/p\u003e \u003cp\u003e9.5.1 What is a charity? 230\u003c\/p\u003e \u003cp\u003e9.5.2 UK history 231\u003c\/p\u003e \u003cp\u003e9.5.3 Investment strategies 232\u003c\/p\u003e \u003cp\u003e9.5.4 Taxation 232\u003c\/p\u003e \u003cp\u003e9.5.5 Charities as investors 232\u003c\/p\u003e \u003cp\u003e9.6 Some conclusions 233\u003c\/p\u003e \u003cp\u003e\u003cb\u003e10 Investment Manager Structures 235\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e10.1 Introduction 235\u003c\/p\u003e \u003cp\u003e10.2 General partner in limited partnership structures 235\u003c\/p\u003e \u003cp\u003e10.3 Regulation of investment managers 236\u003c\/p\u003e \u003cp\u003e10.3.1 The UK Financial Conduct Authority 236\u003c\/p\u003e \u003cp\u003e10.3.2 The US Securities Exchange Commission 237\u003c\/p\u003e \u003cp\u003e10.3.3 Dodd–Frank Wall Street Reform and Consumer Protection Act 238\u003c\/p\u003e \u003cp\u003e10.3.4 The EU Alternative Investment Fund Managers Directive 239\u003c\/p\u003e \u003cp\u003e10.4 Structures of management vehicles 240\u003c\/p\u003e \u003cp\u003e10.4.1 UK LLP 240\u003c\/p\u003e \u003cp\u003e10.4.2 US Limited Liability Company 240\u003c\/p\u003e \u003cp\u003e10.4.3 Company 241\u003c\/p\u003e \u003cp\u003e10.4.4 GP as an LP structure 241\u003c\/p\u003e \u003cp\u003e10.5 Investment manager fees 241\u003c\/p\u003e \u003cp\u003e10.5.1 Closed-ended funds 241\u003c\/p\u003e \u003cp\u003e10.5.2 Open-ended funds 242\u003c\/p\u003e \u003cp\u003e10.5.3 Transactional or monitoring fees 242\u003c\/p\u003e \u003cp\u003e10.6 Performance fees and carried interest 243\u003c\/p\u003e \u003cp\u003e10.6.1 Closed-ended funds 243\u003c\/p\u003e \u003cp\u003e10.6.2 Open-ended funds 244\u003c\/p\u003e \u003cp\u003e10.7 Internal economics 244\u003c\/p\u003e \u003cp\u003e10.7.1 Salary and fixed draws 245\u003c\/p\u003e \u003cp\u003e10.7.2 Bonuses 245\u003c\/p\u003e \u003cp\u003e10.7.3 Share and option ownership of investment company 245\u003c\/p\u003e \u003cp\u003e10.7.4 Performance fee share and carried interest 245\u003c\/p\u003e \u003cp\u003e10.7.5 Co-investment 245\u003c\/p\u003e \u003cp\u003e10.7.6 Fund investment or the GP commitment 246\u003c\/p\u003e \u003cp\u003e10.8 External ownership of investment manager groups 246\u003c\/p\u003e \u003cp\u003e10.9 Listing of investment manager groups 246\u003c\/p\u003e \u003cp\u003e10.10 Boards and committees of an investment manager 247\u003c\/p\u003e \u003cp\u003e10.10.1 Board 247\u003c\/p\u003e \u003cp\u003e10.10.2 Non-executives 247\u003c\/p\u003e \u003cp\u003e10.10.3 Executive committee 247\u003c\/p\u003e \u003cp\u003e10.10.4 Investment committee 248\u003c\/p\u003e \u003cp\u003e10.10.5 Industrialists 248\u003c\/p\u003e \u003cp\u003e10.11 Manager or adviser 248\u003c\/p\u003e \u003cp\u003e10.11.1 Permanent establishment rules 248\u003c\/p\u003e \u003cp\u003e10.11.2 Other drivers 248\u003c\/p\u003e \u003cp\u003e10.12 Family offices 249\u003c\/p\u003e \u003cp\u003e10.13 Some conclusions 249\u003c\/p\u003e \u003cp\u003e\u003cb\u003e11 Taxation Principles in Funds 251\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e11.1 Introduction 251\u003c\/p\u003e \u003cp\u003e11.2 Taxation of funds 251\u003c\/p\u003e \u003cp\u003e11.2.1 UK 251\u003c\/p\u003e \u003cp\u003e11.2.2 US 253\u003c\/p\u003e \u003cp\u003e11.2.3 EU 254\u003c\/p\u003e \u003cp\u003e11.2.4 Permanent establishment rules 255\u003c\/p\u003e \u003cp\u003e11.3 Investors 257\u003c\/p\u003e \u003cp\u003e11.3.1 UK 257\u003c\/p\u003e \u003cp\u003e11.3.2 US 259\u003c\/p\u003e \u003cp\u003e11.4 Investment manager companies 264\u003c\/p\u003e \u003cp\u003e11.4.1 Closed-ended funds 264\u003c\/p\u003e \u003cp\u003e11.4.2 Open-ended funds 265\u003c\/p\u003e \u003cp\u003e11.5 Principals of an investment manager 266\u003c\/p\u003e \u003cp\u003e11.5.1 Equity ownership of investment manager and the fund 266\u003c\/p\u003e \u003cp\u003e11.5.2 Management fees 267\u003c\/p\u003e \u003cp\u003e11.5.3 Carried interest 267\u003c\/p\u003e \u003cp\u003e11.5.4 Performance fees 268\u003c\/p\u003e \u003cp\u003e11.6 Some conclusions 268\u003c\/p\u003e \u003cp\u003e\u003cb\u003e12 Regulatory Environment 269\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e12.1 Introduction 269\u003c\/p\u003e \u003cp\u003e12.1.1 US, UK and EU regulatory environment 269\u003c\/p\u003e \u003cp\u003e12.1.2 Other regulatory environments 269\u003c\/p\u003e \u003cp\u003e12.2 UK regulatory environment 269\u003c\/p\u003e \u003cp\u003e12.3 Financial conduct authority 270\u003c\/p\u003e \u003cp\u003e12.3.1 Statutory objectives 270\u003c\/p\u003e \u003cp\u003e12.3.2 Regulation 270\u003c\/p\u003e \u003cp\u003e12.3.3 Exemptions 271\u003c\/p\u003e \u003cp\u003e12.3.4 Financial promotions 271\u003c\/p\u003e \u003cp\u003e12.3.5 Supervision of firms 271\u003c\/p\u003e \u003cp\u003e12.3.6 Supervision of individuals 271\u003c\/p\u003e \u003cp\u003e12.4 Prudential Regulation Authority 272\u003c\/p\u003e \u003cp\u003e12.4.1 Statutory objectives 272\u003c\/p\u003e \u003cp\u003e12.4.2 Regulation 272\u003c\/p\u003e \u003cp\u003e12.4.3 Supervision of firms 272\u003c\/p\u003e \u003cp\u003e12.4.4 Supervision of Individuals 273\u003c\/p\u003e \u003cp\u003e12.5 US regulatory environment 273\u003c\/p\u003e \u003cp\u003e12.5.1 The United States Securities and Exchange Commission 273\u003c\/p\u003e \u003cp\u003e12.5.2 The Commodity Futures Trading Commission 275\u003c\/p\u003e \u003cp\u003e12.5.3 The Dodd–Frank Wall Street Reform and Consumer Protection Act 276\u003c\/p\u003e \u003cp\u003e12.5.4 The Foreign Account Tax Compliance Act (FATCA) 279\u003c\/p\u003e \u003cp\u003e12.5.5 FBAR reporting requirements 279\u003c\/p\u003e \u003cp\u003e12.6 EU regulatory environment – the Alternative Investment Fund Managers Directive 280\u003c\/p\u003e \u003cp\u003e12.6.1 Background 280\u003c\/p\u003e \u003cp\u003e12.6.2 Authorization requirements for AIFMs 281\u003c\/p\u003e \u003cp\u003e12.6.3 Authorization requirements for small AIFMs 282\u003c\/p\u003e \u003cp\u003e12.6.4 Marketing of AIFMs 283\u003c\/p\u003e \u003cp\u003e12.6.5 National private placement 284\u003c\/p\u003e \u003cp\u003e12.6.6 Delegation 284\u003c\/p\u003e \u003cp\u003e12.6.7 Depositaries 285\u003c\/p\u003e \u003cp\u003e12.6.8 Capital requirements 285\u003c\/p\u003e \u003cp\u003e12.6.9 Code of conduct 286\u003c\/p\u003e \u003cp\u003e12.6.10 Transparency 286\u003c\/p\u003e \u003cp\u003e12.6.11 Leverage and asset stripping 286\u003c\/p\u003e \u003cp\u003e12.6.12 Remuneration 287\u003c\/p\u003e \u003cp\u003e12.6.13 Valuation 287\u003c\/p\u003e \u003cp\u003e12.7 Other EU regulation 287\u003c\/p\u003e \u003cp\u003e12.7.1 Basel III 287\u003c\/p\u003e \u003cp\u003e12.7.2 Solvency II 288\u003c\/p\u003e \u003cp\u003e12.7.3 European Market Infrastructure Regulation (EMIR) 289\u003c\/p\u003e \u003cp\u003e12.7.4 EU energy infrastructure proposals 289\u003c\/p\u003e \u003cp\u003e12.8 Regulation – some conclusions for alternative asset fund managers 290\u003c\/p\u003e \u003cp\u003e\u003cb\u003e13 Comparisons and Conclusions 293\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e13.1 Introduction 293\u003c\/p\u003e \u003cp\u003e13.2 Evolving structural drivers 293\u003c\/p\u003e \u003cp\u003e13.2.1 Tax efficiency 293\u003c\/p\u003e \u003cp\u003e13.2.2 Regulation 294\u003c\/p\u003e \u003cp\u003e13.3 Core structures compared 296\u003c\/p\u003e \u003cp\u003e13.3.1 Key differences between private equity funds, hedge funds and quoted funds 296\u003c\/p\u003e \u003cp\u003e13.4 The paperwork 299\u003c\/p\u003e \u003cp\u003e13.5 The actors 299\u003c\/p\u003e \u003cp\u003e13.6 The supporting actors 301\u003c\/p\u003e \u003cp\u003e13.7 What is trending? 302\u003c\/p\u003e \u003cp\u003e13.7.1 Internet 302\u003c\/p\u003e \u003cp\u003e13.7.2 Multi-immediate media 302\u003c\/p\u003e \u003cp\u003e13.7.3 Onshore\/offshore debunked 303\u003c\/p\u003e \u003cp\u003e13.7.4 Change of focus 304\u003c\/p\u003e \u003cp\u003e13.7.5 Masters of the Universe 305\u003c\/p\u003e \u003cp\u003e13.7.6 Paradigm bashing 305\u003c\/p\u003e \u003cp\u003e13.7.7 Book conclusion 305\u003c\/p\u003e \u003cp\u003eAppendix I Definitions 307\u003c\/p\u003e \u003cp\u003eAppendix II Abbreviations 311\u003c\/p\u003e \u003cp\u003eAppendix III Acknowledgements 319\u003c\/p\u003e \u003cp\u003eIndex 327\u003c\/p\u003e","brand":"John Wiley \u0026 Sons Inc","offers":[{"title":"Default Title","offer_id":49406923768151,"sku":"9781118790403","price":59.85,"currency_code":"GBP","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0817\/1739\/5799\/files\/9781118790403.jpg?v=1730497575","url":"https:\/\/bookcurl.com\/products\/funds-9781118790403","provider":"Book Curl","version":"1.0","type":"link"}