David Billings, partner and Simon
Thomas counsel at Akin Gump Strauss Hauer & Feld,
explain the options for fund domicile and structure
Ten years ago, the word 'Europe' in relation to hedge funds
was used only in the context of the manager's domicile. With
the exception of a select group of Luxembourg-based funds,
there were few, if any, funds established in mainland Europe
Today, any manager wishing to establish a European hedge
fund can choose from a number of jurisdictions. The traditional
offshore jurisdictions (BVI, Cayman Islands and Bermuda) remain
but have been joined by the European offshore centres (Isle of
Man, Jersey and Guernsey), the EU financial services centres
(Ireland, Luxembourg and Malta) and a number of EU states (e.g.
Germany, France and Italy, among others). Indeed, the only
major European economy without a practical hedge fund product
is the UK.
Despite this range of choice, in...