Yes, it is possible to raise finance offshore for your business projects or hedge funds!
If you are actively looking for investors to for a project, probably the first and most important thing you need is the right legal framework in place.Primary considerations are:
- Safety: Obviously you need to choose a well-regulated jurisdiction where the law is clear and effective at protecting investors and fund managers alike.
- Regulation: Depending mainly on the type of investor you wish to attract, you may choose less or more regulation. For example a British Virgin Islands Closed End Fund is a fast and straightforward way to set up a private hedge fund for friends, family and colleagues with little regulation. If you wish to attract larger numbers of smaller investors, it is in your interests to be more strictly regulated in order to give reassurance to the investors.
- Confidentiality: Many fund managers do not want to reveal their trading strategies, and investors will likely prefer to keep their investments private. Confidentiality is therefore an important consideration when setting up an offshore fund.
We can assist clients in going public on various traditional and non-traditional stock exchanges. We can introduce you to the auditors, brokers, managers, underwriters and other professionals that you will need, if you do not already have your own. When going public it is more important than ever to get the right legal structure from the very beginning, as mistakes can be very expensive to correct later. For example, to go public:
- Choose a share company such as an IBC, rather than an LLC that is a simpler structure for fewer investors.
- Choose a reputable jurisdiction: BVI and Marshall Islands are particularly recommended for companies wishing to go public.
- Avoid the use of run-of-the-mill nominee directors since this will be very badly viewed by regulators. Instead, choose Professional Directors who have a track record and experience and are prepared to lend their good names to your project in return for a directors’ fee.
- Always keep the company business totally separate from any other business of the owner, so as to avoid potential conflicts of interest.
- Be sure to keep accounting that conforms to international standards from the very beginning
Crowdfunding is a good alternative for smaller projects that are just getting off the ground. For crowdfunding projects, however, the same advice applies as that listed above under ‘Going Public.’
For further information and to discuss your requirements please Contact Offshore Pro Group.