Your Own Offshore Mutual Fund And/Or Hedge Fund

Your Own Offshore Mutual Fund And/Or Hedge Fund

A good alternative to an offshore international bank is an Offshore Mutual Fund or an Offshore Hedge Fund.  Such a fund will not offer all the services of a bank, but will concentrate on investing the funds of clients and/or one’s family.  It offers investment possibilities that are global and unrestricted in scope.  A Hedge Fund normally concentrates on preserving capital while seeking income.  The Mutual Fund is an ideal vehicle for a Family Office or other Private investment vehicle, but is equally well suited for public solicitations for fund management.

The company formed to apply for the Mutual Fund or Hedge Fund license may be an International Business Company (IBC), Limited Liability Company (LLC), Segregated Cell Company or Unit Trust, depending on the structures permitted in the jurisdiction

Abaco Ltd is a global force in arranging international vehicles for investment and can arrange for the set up of such funds in a number or jurisdictions around the world.  Our current recommended locations for such vehicles are the British Virgin Islands (BVI) and St. Vincent & the Grenadines (SVG).

We are able to arrange for the production of offerings or prospectuses, where required, for the appointment of directors, the licensing of investment companies and administration companies as required by the regulatory authorities as providers of necessary services to the Mutual Fund.

Applicable Law in St. Vincent & the Grenadines

An Accredited Fund:  To be accredited, the fund must have a minimum subscription requirement of $25,000 USD or its equivalent in any other currency.  The fund has no limit on the number of investors.

A Private Fund:  Such a fund cannot offer its shares to the general public and must be held by

  1. a)      Not more than 50 investors and the first time investment of such investors must not be less than seventy-five thousand dollars or the equivalent in any other currency; or any number of investors where the first time investment of each such investor is not less than seven hundred thousand dollars or the equivalent in any other currency or
  2. b)      Is designated as a private fund by regulations

A Public Fund:  Such a Fund publishes or distributes a prospectus by any means and offers any shares it issues for subscription or purchase to any interested member of the general public.

For the purpose of recognition of licensed administrators and managers the following countries or jurisdictions are recognized under the Mutual Funds Act:

  • Argentina
  • Australia
  • Belgium
  • Bermuda
  • Brazil
  • British Virgin Islands
  • Canada
  • Cayman Islands
  • Chile
  • Federation of German States
  • Hong Kong
  • Japan
  • Luxembourg
  • Principality of Liechtenstein
  • Republic of China (Taiwan)
  • Republic of France
  • Republic of Ireland
  • Switzerland
  • United Kingdom
  • United States of America