Philip Graham, Of Harneys Talks To HFMweek About The Trends And Developments Of The Hedge Fund Sector On The British Virgin Islands -
HFMWEEK (HFM): WHAT ARE THE MAIN TRENDS SPECIFIC TO THE FUNDS INDUSTRY IN THE BRITISH VIRGIN ISLANDS (BVI)?
PHILIP GRAHAM (PG): With more than 2,200 regulated funds and at least as many closed-end or private equity fund vehicles formed in the jurisdiction, the BVI funds market sees a huge variety of structures and investment managers from all over the world who seek a domicile that provides political stability, an ultra-reliable legal system and experienced industry practitioners. The general trend is that there isn’t a general trend; we speak to fund managers from New York and London with over $25bn under management and in the same day could be speaking to a brand new individual to the sector that wishes to set-up an incubator fund out of South Korea. This special blend is what keeps the BVI in such high regard.
HFM: WHAT ARE THE BVI’S STRENGTHS AS A FUNDS JURISDICTION AND HOW DO THEY COMPETE AGAINST ONSHORE STRUCTURES?
PG: Besides those already mentioned, the BVI funds legislation is based on fundamentally accepted principles, but allows for a great deal of flexibility to ensure that structures of all shapes and sizes are able to function at their optimum level. This is a distinct advantage over the more rigid onshore entities, which will ultimately impact upon the returns to investors. When you combine this with the low cost-base compared to most offshore jurisdictions, let alone the much higher costs of onshore funds, the benefits of setting up in the BVI become obvious.
Please see full interview below for more information.
Firefox recommends the PDF Plugin for Mac OS X for viewing PDF documents in your browser.
We can also show you Legal Updates using the Google Viewer; however, you will need to be logged into Google Docs to view them.
Please choose one of the above to proceed!
LOADING PDF: If there are any problems, click here to download the file.