Setting Up An Offshore Fund
Many, perhaps most, prospective or "start-up" fund managers have previously worked for a major bank, institution or another hedge fund. As such, they may have substantial experience and expertise in their particular investment strategy, however often, they will have no experience or knowledge of how to structure an offshore fund or, indeed, run an investment management business.
Custom House will assist a client setting up a hedge fund, with initial help from day one, in the selection of the most appropriate jurisdiction for the client, until, in due course, when the fund is trading, informing media and data services of the share price. In between, Custom House will establish the fund entity, assist in the preparation of all of the necessary documents and agreements, including preparing the Offering Memorandum or Prospectus and the Memorandum and Articles of Association (the Corporate Charter). A detailed breakdown of the Fund Formation Service is shown under "Fund Set-Up Summarised".
When organising the fund, Custom House works closely with its Client's own choice of prime or clearing brokers, custodian bank, auditor, et al. Alternatively, if a Client does not have a preference for a particular service provider, Custom House can introduce suitable candidates for the Client's consideration.
It must be noted that Custom House will take a "back seat" if the client has appointed an attorney other other advisor, because having two persons advising can result in major, expensive, frictions and disputes and will not add value.
Custom House can also assist in obtaining a Listing on The Irish Stock Exchange for qualifying funds, if that is what is required.
Four Primary Objectives
The Fund Formation Service has been designed to achieve four primary objectives:
- To help establish a fund that meets the client's objectives;
- To eliminate the problems that Clients may have when trying to establish their own specialist offshore fund;
- To ensure that the fund is set up at an acceptable cost; and
- To do this as quickly and efficiently as possible.
Questionnaire
To achieve these objectives, Custom House has produced a detailed questionnaire (the "Questionnaire") for prospective Clients to complete. On the basis of their answers, Custom House will issue a full review and comment on structure, jurisdiction and other relevant matters, giving a projected timetable to launch date and a quotation for all related costs. With the Questionnaire, Custom House also supplies a memorandum (the "Memorandum") entitled "Some Factors To Be Considered When Establishing An Offshore Fund". The points raised in this Memorandum relate to specific questions in the Questionaire and will not only assist in completing the Questionaire but also go someway towards in explaining why we asked a particular question in the first place. A copy of the Questionnaire can be obtained by completing the confidential profile and enquiry sheet - see "Feedback Facility". The Memorandum can be seen by clicking on to "Memorandum".
