Cover -- Title Page -- Copyright Page -- Contents -- 1 Introduction to Funds -- 1.1 Why this book? -- 1.2 Alternative assets -- 1.3 What is a fund? -- 1.4 Categories of funds -- 1.4.1 Ways to categorize -- 1.5 Choosing a vehicle -- 1.6 Open-ended and closed-ended fund structures -- 1.6.1 Introduction -- 1.6.2 Impact of the credit crisis -- 1.7 Contents of this book -- 2 Limited Partnerships … Use in Alternative Asset Funds -- 2.1 Introduction to limited partnerships -- 2.1.1 Suitability of limited partnerships for alternative asset funds -- 2.1.2 Benefits of limited partnerships -- 2.1.3 Types of limited partnerships -- 2.2 Structure of limited partnership funds -- 2.2.1 Role of general and limited partners -- 2.2.2 Management and operation of the partnership -- 2.2.3 Remuneration -- 2.2.4 UK limited partnerships -- 2.2.5 US limited partnerships -- 2.2.6 Parallel funds -- 2.2.7 Master/feeders -- 2.3 Establishment of the fund -- 2.3.1 Process -- 2.3.2 Documentation -- 2.4 Investing -- 2.4.1 Investment objective and returns -- 2.4.2 Investment strategy -- 2.4.3 Investment period -- 2.4.4 Term -- 2.4.5 Fund borrowing -- 2.4.6 Investment restrictions -- 2.5 Commitments by investors -- 2.5.1 Commitments/drawdowns -- 2.5.2 Recycling -- 2.5.3 Default -- 2.5.4 Management team's commitment -- 2.5.5 Closings/equalization -- 2.5.6 Investor clawback -- 2.5.7 Withdrawals -- 2.5.8 Transfers -- 2.6 Economics -- 2.6.1 Management fee/priority profit share -- 2.6.2 Distributions/carried interest -- 2.6.3 Carried interest, escrow and clawback -- 2.6.4 Carried interest structure -- 2.6.5 Expenses -- 2.6.6 Transactional or monitoring fees -- 2.7 Governance -- 2.7.1 Removal of the general partner/manager -- 2.7.2 Key person -- 2.7.3 Advisory committee -- 2.7.4 Reports and meetings -- 2.8 Some conclusions -- 3 Hedge Funds -- 3.1 Introduction.

3.2 Types of hedge fund strategies -- 3.2.1 Market neutral or directional -- 3.2.2 Discretionary or systematic -- 3.2.3 Strategy implementation and instruments -- 3.2.4 Typical strategies -- 3.3 Where are hedge funds located and what are the tax drivers? -- 3.3.1 Cayman Islands -- 3.3.2 British Virgin Islands -- 3.3.3 Jersey -- 3.4 Hedge fund investors -- 3.4.1 Seed and cornerstone investors -- 3.4.2 Incubator funds -- 3.4.3 Fund of funds -- 3.4.4 Individual investors and family offices -- 3.4.5 Platforms -- 3.5 Principal vehicles -- 3.5.1 The fund vehicle -- 3.5.2 Offshore management vehicle -- 3.5.3 Onshore advisory entity -- 3.6 Types of hedge fund structures -- 3.6.1 Simple hedge fund -- 3.6.2 The master/feeder structure -- 3.6.3 EU UCITS-compliant funds -- 3.7 Establishment of the fund -- 3.7.1 Process -- 3.7.2 Documentation -- 3.8 Management and performance fees -- 3.8.1 Management fee -- 3.8.2 Performance fee -- 3.8.3 Hurdle rate -- 3.8.4 High water mark -- 3.8.5 Redemption fees -- 3.9 Other key terms -- 3.9.1 Liquidity -- 3.9.2 Lock-ups -- 3.9.3 Gating provisions -- 3.9.4 Capacity -- 3.9.5 Early stage or seed investors -- 3.9.6 Key man -- 3.9.7 Equalization -- 3.10 The use of side pockets -- 3.11 Regulation -- 3.12 Some conclusions -- 4 Structural Variants and Alternative Structures to Chapters 2 and 3 -- 4.1 Introduction -- 4.2 Pledge funds -- 4.3 'Combo' fund structure -- 4.3.1 Introduction -- 4.3.2 The blind-pool or committed capital fund -- 4.3.3 The pledge fund -- 4.3.4 The combined (or 'combo') fund -- 4.4 Investment clubs -- 4.5 Fund-lites -- 4.5.1 Introduction -- 4.5.2 Shorter life of the fund -- 4.5.3 Reduced scope of the investment objective -- 4.5.4 Fees -- 4.5.5 No key man clause -- 4.5.6 No escrow or clawback for carry -- 4.5.7 No re-investment of realized funds -- 4.5.8 No restrictions on future funds.

4.5.9 Fund-lites: some conclusions -- 4.6 Top-up, bridge and side pockets -- 4.7 Managed accounts -- 4.7.1 Introduction -- 4.7.2 Comparison with funds -- 4.7.3 Advantages -- 4.7.4 Disadvantages -- 4.7.5 Some conclusions -- 4.8 Corporate vehicles -- 4.9 Special purpose acquisition companies (SPACs) or cash shells -- 4.10 UK enterprise investment scheme -- 4.10.1 Introduction -- 4.10.2 Legislation -- 4.10.3 Conditions -- 4.10.4 EIS funds -- 4.10.5 Tax -- 4.11 UK unit trusts -- 4.11.1 Introduction -- 4.11.2 Legislation -- 4.11.3 Authorized unit trusts -- 4.11.4 Undertakings for collective investment in transferable securities -- 4.11.5 Pricing -- 4.11.6 Risk -- 4.11.7 Fees -- 4.11.8 Taxation of unit trusts -- 4.12 Offshore alternatives -- 4.12.1 Unit trusts -- 4.12.2 Cell companies -- 4.13 Jersey property unit trusts -- 4.13.1 Introduction -- 4.13.2 Jersey FS law -- 4.13.3 Types of JPUT -- 4.13.4 Some JPUT conclusions -- 4.14 Some conclusions -- 5 Investment-specific Strategies -- 5.1 Introduction -- 5.2 Private equity/venture capital -- 5.2.1 Introduction -- 5.2.2 Strategies -- 5.3 Public equities -- 5.3.1 Introduction -- 5.3.2 Strategies -- 5.4 Bonds -- 5.5 Credit funds -- 5.5.1 Introduction -- 5.5.2 Senior debt -- 5.5.3 Mezzanine debt -- 5.5.4 Bonds -- 5.5.5 Asset-backed securities (ABSs), collateralized loan obligations (CLOs) and collateralized debt obligations (CDOs) -- 5.5.6 Fund diversity -- 5.6 Shadow banking -- 5.6.1 Introduction -- 5.6.2 SIVs/conduits -- 5.6.3 Perceived risks -- 5.6.4 Proposed added US regulation -- 5.7 Real estate and infrastructure -- 5.7.1 Introduction -- 5.7.2 Real estate strategies -- 5.7.3 Infrastructure strategies -- 5.8 Energy funds -- 5.8.1 Old energy -- 5.8.2 New energy -- 5.9 Commodities funds -- 5.9.1 Introduction -- 5.9.2 Agriculture -- 5.9.3 Metals -- 5.9.4 Energy -- 5.9.5 Direct or indirect investment.

5.9.6 Regulation -- 5.10 Social impact funds -- 5.10.1 Introduction -- 5.10.2 The rewards of social impact funds -- 5.10.3 The risks of social impact funds -- 5.11 Secondaries funds -- 5.11.1 Introduction -- 5.11.2 Key legal points -- 5.11.3 Aspects of secondaries investment -- 5.11.4 Some criticism of secondaries investment -- 5.12 Derivatives funds -- 5.12.1 Introduction -- 5.12.2 Issues around derivatives -- 5.12.3 Specific regulation -- 5.13 Currency funds -- 5.13.1 Introduction -- 5.13.2 Issues around currency funds -- 5.13.3 Specific regulation -- 5.14 Hedge fund strategies -- 5.15 Some conclusions -- 6 Stock Markets and Listed Funds -- 6.1 Introduction -- 6.2 Listings of private funds -- 6.2.1 Introduction -- 6.2.2 Direct funds -- 6.2.3 Feeder funds -- 6.2.4 Taxation -- 6.3 UK markets and listed fund structures -- 6.3.1 Background -- 6.3.2 The London markets -- 6.3.3 Vehicles in London appropriate for listing investment funds -- 6.3.4 Obtaining a London listing … Main Market and AIM -- 6.4 New York -- 6.4.1 Background -- 6.4.2 The New York markets -- 6.4.3 Vehicles in New York appropriate for listing investment funds -- 6.5 Europe -- 6.5.1 The European markets -- 6.5.2 European exchange traded funds (ETFs) -- 6.6 Alternative offshore stock exchanges -- 6.7 Some conclusions -- 7 Principal 'Offshore' Fund Locations -- 7.1 What are the characteristics of an attractive investment fund location? -- (A) OFFSHORE CROWN DEPENDENCIES -- 7.2 The Channel Islands -- 7.2.1 Background -- 7.2.2 Common structures -- 7.2.3 Regulation of the fund -- 7.2.4 Stock exchange -- 7.2.5 Taxation -- 7.3 The Isle of Man -- 7.3.1 Background -- 7.3.2 Common structures -- 7.3.3 Regulation -- 7.3.4 Taxation -- 7.4 Other Channel Islands -- 7.4.1 Alderney -- 7.4.2 Isle of Sark -- 7.4.3 Herm -- (B) SPECIFICALLY REGULATED EU FUND JURISDICTIONS -- 7.5 Ireland -- 7.5.1 Background.

7.5.2 Common structures for funds -- 7.5.3 Regulation -- 7.5.4 Stock exchange -- 7.5.5 Taxation -- 7.6 Luxembourg -- 7.6.1 Background -- 7.6.2 Common structures -- 7.6.3 Regulation -- 7.6.4 Stock exchange -- 7.6.5 Taxation -- 7.7 Malta -- 7.7.1 Background -- 7.7.2 Common structures -- 7.7.3 Regulation -- 7.7.4 Stock exchange -- 7.7.5 Taxation -- 7.8 Cyprus -- 7.8.1 Background -- 7.8.2 Common structures -- 7.8.3 Regulation -- 7.8.4 Stock exchange -- 7.8.5 Taxation -- 7.9 Gibraltar -- 7.9.1 Background -- 7.9.2 Common structures -- 7.9.3 Regulation -- 7.9.4 Stock exchange -- 7.9.5 Taxation -- (C) REST OF EUROPE -- 7.10 The Netherlands -- 7.10.1 Background -- 7.10.2 Common structures -- 7.10.3 Regulation -- 7.10.4 Stock exchange -- 7.10.5 Taxation -- 7.11 Switzerland -- 7.11.1 Background -- 7.11.2 Common structures -- 7.11.3 Regulation -- 7.11.4 Stock exchange -- 7.11.5 Taxation -- (D) CARIBBEAN AND ATLANTIC -- 7.12 The Cayman Islands -- 7.12.1 Background -- 7.12.2 Common structures -- 7.12.3 Regulation -- 7.12.4 Stock exchange -- 7.12.5 Taxation -- 7.13 The British Virgin Islands -- 7.13.1 Background -- 7.13.2 Common structures -- 7.13.3 Regulation -- 7.13.4 Taxation -- 7.14 Bermuda -- 7.14.1 Background -- 7.14.2 Common structures -- 7.14.3 Regulation -- 7.14.4 Ongoing reporting -- 7.14.5 Funds outside regulation -- 7.14.6 Segregated Accounts Companies -- 7.14.7 Stock market -- 7.14.8 Taxation -- (E) ASIA -- 7.15 Hong Kong -- 7.15.1 Background -- 7.15.2 Common structures -- 7.15.3 Regulation -- 7.15.4 Stock exchange -- 7.15.5 Taxation -- 7.16 Singapore -- 7.16.1 Background -- 7.16.2 Common structures -- 7.16.3 Regulation -- 7.16.4 Stock exchange -- 7.16.5 Taxation -- 7.17 Dubai -- 7.17.1 Background -- 7.17.2 Common structures -- 7.17.3 Regulation -- 7.17.4 Stock exchange -- 7.17.5 Taxation -- 7.18 Mauritius -- 7.18.1 Background.

7.18.2 Common structures.