Funds: Private Equity, Hedge and All Core Structures

Chapter 8

Principal ‘Onshore’ Fund Locations

8.1 INTRODUCTION

Following on from Chapter 7, this chapter addresses the incorporation of investment funds in a number of the principal onshore fund locations. The term ‘onshore’ has been traditionally used to refer to a reputable jurisdiction under which funds will comply with stringent legal and regulatory requirements; however, as previously discussed in Chapter 7, I believe that the distinction between onshore and offshore jurisdictions is becoming redundant, as there are numerous examples of onshore jurisdictions beginning to relax their own fund rules and taxation policies and offshore jurisdictions tightening governance rules. For further commentary please refer to Chapter 13, section 13.7.3.

I have included the jurisdictions in this chapter by reason that they include some of the world’s largest and fastest growing economies. The jurisdictions below include the ‘BRIC’ nations (Brazil, Russia, India and China), a term coined by Goldman Sachs in 2001.¹ I have grouped the jurisdictions by continent, with the exception of Islamic investment funds, which are not jurisdiction-specific. I have commenced the analysis in part (A) with a review of the high gross domestic product (GDP) jurisdictions within Asia of China, Japan and India. An analysis of the Americas is provided in part (B), relating to Canada and Brazil, and I have reviewed a number of onshore European jurisdictions, being Russia, Germany and France, in part (C). I have ...