Launching a new offshore fund?

Alan Dickson, Gabriela Romano • Posted 01/11/2011 • Under Articles

Choose your jurisdiction carefully

Anyone who ever arrived at a busy airport to catch a flight has been exposed to the frequently stressful experience of being caught up in a distribution hub –airports are distribution points where passengers are screened, directed and transported to their respective destinations. Time is of the essence and efficiency is absolutely required. All airports look vaguely familiar regardless of country or local language – but frequent travelers quickly differentiate the good from the bad.

Offshore financial centers are no different. Their frequent users are international asset and hedge fund managers whose mission is to efficiently deploy investment monies. These managers need their funds, whatever the currency, to travel from origin to investment destination safely and efficiently. Time lost in the distribution process translates directly into lost money.

Given a choice, investment fund and hedge fund managers have incentive to seek out the most efficient and secure offshore jurisdictions. They will choose to use only those jurisdictions that are efficient, secure and hospitable. Only the most efficient offshore financial centers are going to be selected to implement sophisticated international investment strategies.