Funds

Private Equity, Hedge and All Core Structures

Inbunden, Engelska, 2014

1 129 kr

Beställningsvara. Skickas inom 7-10 vardagar

Fri frakt för medlemmar vid köp för minst 249 kr.

Investment funds are the driving force behind much global private economic development, and yet the world of investment funds can be complex and confusing.Funds: Private Equity, Hedge and All Core Structures is a practical introductory guide to the legal and commercial context in which funds are raised and invest their money, with examinations of the tax and regulatory background, and an analysis of the key themes and trends that the funds industry face following the financial crisis. The book looks at asset classes, investor return models, the commercial and legal pressures driving different structures and key global jurisdictions for both fund establishment and making investments. It also contains a comprehensive analysis of fund managers, from remuneration, best practice through to regulation.The book is written for readers from all backgrounds, from students or newcomers to the industry to experienced investors looking to branch out into alternative asset classes, or existing asset managers and their advisers wanting to know more about the structures elsewhere within the industry.

Produktinformation

Utgivningsdatum2014-02-28
Mått173 x 239 x 28 mm
Vikt816 g
FormatInbunden
SpråkEngelska
SerieWiley Finance Series
Antal sidor368
FörlagJohn Wiley & Sons Inc
ISBN9781118790403

Tillhör följande kategorier

Finansiering inom Ekonomi och ledarskap

About the authorMatthew Hudson is an entrepreneurial lawyer with over 25 years of Private Equity experience, both as a lawyer and as an investor. Matthew is a well-known industry figure and regularly speaks on new developments concerning the Private Equity industry. Matthew has helped build and manage four of the major Private Equity law firms: Founder of MJ HudsonCo-founded the Private Equity Group of SJ BerwinRe-established the O’Melveny & Myers London office, and chaired the European Private Equity and M&A PracticesCreated the Proskauer Rose, London officeFurther, Matthew has also worked in three Private Equity houses: Leveraged buy-outs for a group built within CSFBFounded Far Blue Ventures, the Venture Capital house, backing IP spin-outs from universitiesColler Capital, the global Secondaries firm

1 Introduction to Funds 1 1.1 Why this book? 11.2 Alternative assets 11.3 What is a fund? 21.4 Categories of funds 31.4.1 Ways to categorize 31.5 Choosing a vehicle 51.6 Open-ended and closed-ended fund structures 61.6.1 Introduction 61.6.2 Impact of the credit crisis 71.7 Contents of this book 82 Limited Partnerships – Use in Alternative Asset Funds 92.1 Introduction to limited partnerships 92.1.1 Suitability of limited partnerships for alternative asset funds 92.1.2 Benefits of limited partnerships 92.1.3 Types of limited partnerships 92.2 Structure of limited partnership funds 92.2.1 Role of general and limited partners 92.2.2 Management and operation of the partnership 102.2.3 Remuneration 112.2.4 UK limited partnerships 112.2.5 US limited partnerships 132.2.6 Parallel funds 152.2.7 Master/feeders 172.3 Establishment of the fund 182.3.1 Process 182.3.2 Documentation 192.4 Investing 202.4.1 Investment objective and returns 202.4.2 Investment strategy 202.4.3 Investment period 202.4.4 Term 212.4.5 Fund borrowing 212.4.6 Investment restrictions 212.5 Commitments by investors 222.5.1 Commitments/drawdowns 222.5.2 Recycling 222.5.3 Default 232.5.4 Management team’s commitment 242.5.5 Closings/equalization 242.5.6 Investor clawback 252.5.7 Withdrawals 252.5.8 Transfers 252.6 Economics 262.6.1 Management fee/priority profit share 262.6.2 Distributions/carried interest 262.6.3 Carried interest, escrow and clawback 292.6.4 Carried interest structure 302.6.5 Expenses 302.6.6 Transactional or monitoring fees 302.7 Governance 312.7.1 Removal of the general partner/manager 312.7.2 Key person 322.7.3 Advisory committee 332.7.4 Reports and meetings 332.8 Some conclusions 333 Hedge Funds 353.1 Introduction 353.2 Types of hedge fund strategies 353.2.1 Market neutral or directional 353.2.2 Discretionary or systematic 353.2.3 Strategy implementation and instruments 363.2.4 Typical strategies 363.3 Where are hedge funds located and what are the tax drivers? 393.3.1 Cayman Islands 393.3.2 British Virgin Islands 403.3.3 Jersey 413.4 Hedge fund investors 423.4.1 Seed and cornerstone investors 423.4.2 Incubator funds 423.4.3 Fund of funds 423.4.4 Individual investors and family offices 433.4.5 Platforms 433.5 Principal vehicles 433.5.1 The fund vehicle 433.5.2 Offshore management vehicle 433.5.3 Onshore advisory entity 443.6 Types of hedge fund structures 443.6.1 Simple hedge fund 443.6.2 The master/feeder structure 453.6.3 EU UCITS-compliant funds 473.7 Establishment of the fund 503.7.1 Process 503.7.2 Documentation 513.8 Management and performance fees 523.8.1 Management fee 523.8.2 Performance fee 523.8.3 Hurdle rate 523.8.4 High water mark 533.8.5 Redemption fees 533.9 Other key terms 533.9.1 Liquidity 533.9.2 Lock-ups 533.9.3 Gating provisions 543.9.4 Capacity 543.9.5 Early stage or seed investors 543.9.6 Key man 543.9.7 Equalization 543.10 The use of side pockets 553.11 Regulation 553.12 Some conclusions 564 Structural Variants and Alternative Structures to Chapters 2 and 3 574.1 Introduction 574.2 Pledge funds 574.3 ‘Combo’ fund structure 584.3.1 Introduction 584.3.2 The blind-pool or committed capital fund 584.3.3 The pledge fund 584.3.4 The combined (or ‘combo’) fund 594.4 Investment clubs 604.5 Fund-lites 604.5.1 Introduction 604.5.2 Shorter life of the fund 614.5.3 Reduced scope of the investment objective 614.5.4 Fees 614.5.5 No key man clause 614.5.6 No escrow or clawback for carry 614.5.7 No re-investment of realized funds 624.5.8 No restrictions on future funds 624.5.9 Fund-lites: some conclusions 624.6 Top-up, bridge and side pockets 634.7 Managed accounts 634.7.1 Introduction 634.7.2 Comparison with funds 644.7.3 Advantages 654.7.4 Disadvantages 654.7.5 Some conclusions 664.8 Corporate vehicles 664.9 Special purpose acquisition companies (SPACs) or cash shells 674.10 UK enterprise investment scheme 684.10.1 Introduction 684.10.2 Legislation 684.10.3 Conditions 694.10.4 EIS funds 714.10.5 Tax 714.11 UK unit trusts 724.11.1 Introduction 724.11.2 Legislation 724.11.3 Authorized unit trusts 724.11.4 Undertakings for collective investment in transferable securities 734.11.5 Pricing 744.11.6 Risk 744.11.7 Fees 744.11.8 Taxation of unit trusts 744.12 Offshore alternatives 764.12.1 Unit trusts 764.12.2 Cell companies 764.13 Jersey property unit trusts 764.13.1 Introduction 764.13.2 Jersey FS law 774.13.3 Types of JPUT 774.13.4 Some JPUT conclusions 784.14 Some conclusions 795 Investment-specific Strategies 815.1 Introduction 815.2 Private equity/venture capital 815.2.1 Introduction 815.2.2 Strategies 815.3 Public equities 825.3.1 Introduction 825.3.2 Strategies 825.4 Bonds 835.5 Credit funds 835.5.1 Introduction 835.5.2 Senior debt 835.5.3 Mezzanine debt 845.5.4 Bonds 855.5.5 Asset-backed securities (ABSs), collateralized loan obligations (CLOs) and collateralized debt obligations (CDOs) 855.5.6 Fund diversity 855.6 Shadow banking 865.6.1 Introduction 865.6.2 SIVs/conduits 865.6.3 Perceived risks 875.6.4 Proposed added US regulation 885.7 Real estate and infrastructure 895.7.1 Introduction 895.7.2 Real estate strategies 895.7.3 Infrastructure strategies 905.8 Energy funds 915.8.1 Old energy 915.8.2 New energy 915.9 Commodities funds 925.9.1 Introduction 925.9.2 Agriculture 925.9.3 Metals 925.9.4 Energy 935.9.5 Direct or indirect investment 935.9.6 Regulation 945.10 Social impact funds 955.10.1 Introduction 955.10.2 The rewards of social impact funds 955.10.3 The risks of social impact funds 965.11 Secondaries funds 965.11.1 Introduction 965.11.2 Key legal points 975.11.3 Aspects of secondaries investment 985.11.4 Some criticism of secondaries investment 985.12 Derivatives funds 995.12.1 Introduction 995.12.2 Issues around derivatives 995.12.3 Specific regulation 1005.13 Currency funds 1005.13.1 Introduction 1005.13.2 Issues around currency funds 1015.13.3 Specific regulation 1015.14 Hedge fund strategies 1015.15 Some conclusions 1016 Stock Markets and Listed Funds 1036.1 Introduction 1036.2 Listings of private funds 1036.2.1 Introduction 1046.2.2 Direct funds 1046.2.3 Feeder funds 1046.2.4 Taxation 1046.3 UK markets and listed fund structures 1056.3.1 Background 1056.3.2 The London markets 1056.3.3 Vehicles in London appropriate for listing investment funds 1066.3.4 Obtaining a London listing – Main Market and AIM 1216.4 New York 1216.4.1 Background 1216.4.2 The New York markets 1216.4.3 Vehicles in New York appropriate for listing investment funds 1226.5 Europe 1286.5.1 The European markets 1286.5.2 European exchange traded funds (ETFs) 1286.6 Alternative offshore stock exchanges 1316.7 Some conclusions 1327 Principal ‘Offshore’ Fund Locations 1337.1 What are the characteristics of an attractive investment fund location? 133(A) OFFSHORE CROWN DEPENDENCIES 1347.2 The Channel Islands 1347.2.1 Background 1347.2.2 Common structures 1347.2.3 Regulation of the fund 1367.2.4 Stock exchange 1387.2.5 Taxation 1387.3 The Isle of Man 1397.3.1 Background 1397.3.2 Common structures 1397.3.3 Regulation 1407.3.4 Taxation 1417.4 Other Channel Islands 1427.4.1 Alderney 1427.4.2 Isle of Sark 1427.4.3 Herm 142(B) SPECIFICALLY REGULATED EU FUND JURISDICTIONS 1427.5 Ireland 1427.5.1 Background 1427.5.2 Common structures for funds 1427.5.3 Regulation 1437.5.4 Stock exchange 1447.5.5 Taxation 1447.6 Luxembourg 1447.6.1 Background 1447.6.2 Common structures 1447.6.3 Regulation 1467.6.4 Stock exchange 1477.6.5 Taxation 1477.7 Malta 1477.7.1 Background 1477.7.2 Common structures 1487.7.3 Regulation 1497.7.4 Stock exchange 1507.7.5 Taxation 1507.8 Cyprus 1507.8.1 Background 1507.8.2 Common structures 1517.8.3 Regulation 1517.8.4 Stock exchange 1527.8.5 Taxation 1527.9 Gibraltar 1527.9.1 Background 1527.9.2 Common structures 1537.9.3 Regulation 1537.9.5 Taxation 155(C) REST OF EUROPE 1567.10 The Netherlands 1567.10.1 Background 1567.10.2 Common structures 1567.10.3 Regulation 1577.10.4 Stock exchange 1577.10.5 Taxation 1577.11 Switzerland 1587.11.1 Background 1587.11.2 Common structures 1587.11.3 Regulation 1587.11.4 Stock exchange 1597.11.5 Taxation 159(D) CARIBBEAN AND ATLANTIC 1597.12 The Cayman Islands 1597.12.1 Background 1597.12.2 Common structures 1597.12.3 Regulation 1607.12.4 Stock exchange 1617.12.5 Taxation 1627.13 The British Virgin Islands 1627.13.1 Background 1627.13.2 Common structures 1627.13.3 Regulation 1637.13.4 Taxation 1637.14 Bermuda 1647.14.1 Background 1647.14.2 Common structures 1647.14.3 Regulation 1657.14.4 Ongoing reporting 1657.14.5 Funds outside regulation 1667.14.6 Segregated Accounts Companies 1667.14.7 Stock market 1677.14.8 Taxation 167(E) ASIA 1687.15 Hong Kong 1687.15.1 Background 1687.15.2 Common structures 1687.15.3 Regulation 1697.15.4 Stock exchange 1697.15.5 Taxation 1697.16 Singapore 1707.16.1 Background 1707.16.2 Common structures 1707.16.3 Regulation 1717.16.4 Stock exchange 1717.16.5 Taxation 1717.17 Dubai 1727.17.1 Background 1727.17.2 Common structures 1727.17.3 Regulation 1727.17.4 Stock exchange 1737.17.5 Taxation 1737.18 Mauritius 1737.18.1 Background 1737.18.2 Common structures 1737.18.3 Regulation 1747.18.4 Stock exchange 1757.18.5 Taxation 1757.19 Some conclusions 1758 Principal ‘Onshore’ Fund Locations 1778.1 Introduction 177(A) ASIA 1788.2 People’s Republic of China 1788.2.1 Background 1788.2.2 Common structures 1788.2.3 Regulation 1808.2.4 Stock exchange 1818.3 Japan 1828.3.1 Background 1828.3.2 Common structures 1828.3.3 Regulation 1838.3.4 Stock exchange 1848.4 India 1848.4.1 Background 1848.4.2 Common structures 1848.4.3 Regulation 1858.4.4 Stock exchange 186(B) THE AMERICAS 1868.5 Canada 1868.5.1 Background 1868.5.2 Common structures 1878.5.3 Regulation 1888.5.4 Stock exchange 1898.6 The Federative Republic of Brazil 1898.6.1 Background 1898.6.2 Common structures 1898.6.3 Regulation 1908.6.4 Stock exchange 190(C) ONSHORE EUROPEAN JURISDICTIONS 1918.7 Russian Federation 1918.7.1 Background 1918.7.2 Common structures 1918.7.3 Regulation 1938.7.4 Stock exchange 1938.8 Germany 1938.8.1 Background 1938.8.2 Common structures 1948.8.3 Regulation 1948.8.4 Stock exchange 1978.9 France 1988.9.1 Background 1988.9.2 Common structures 1988.9.3 Regulation 1998.9.4 Stock exchange 200(D) COMMONWEALTH OF AUSTRALIA 2008.10.1 Background 2008.10.2 Common structures 2018.10.3 Regulation 2028.10.4 Stock exchange 203(E) ISLAMIC INVESTMENT FUNDS 2038.11.1 Background 2038.11.2 Key principles of Sharia’a law 2048.11.4 Parties to an Islamic investment fund 2068.11.5 Stock exchange 2079 Sovereign Wealth Funds, State-sponsored Funds, Pension and Superannuation Schemes and Charities 2099.1 Introduction 2099.2 Sovereign wealth funds (SWFs) 2099.2.1 Definition of sovereign wealth fund 2099.2.2 Source of sovereign wealth funds 2109.2.3 Types of SWF investment vehicles 2109.2.4 SWF investment strategies 2119.2.5 Taxation of SWFs 2129.2.6 Transparency of an SWF 2139.2.7 Key regulation 2149.3 State-sponsored funds 2159.3.1 Introduction 2159.3.2 UK 2159.3.3 Europe 2179.3.4 The US 2189.4 Pensions 2199.4.1 What is a pension? 2199.4.2 UK pensions 2199.4.3 European pensions 2219.4.4 France 2229.4.5 Germany 2229.4.6 US pensions 2249.4.7 Australia 2279.4.8 Pension funds as an investor 2299.5 Charities 2309.5.1 What is a charity? 2309.5.2 UK history 2319.5.3 Investment strategies 2329.5.4 Taxation 2329.5.5 Charities as investors 2329.6 Some conclusions 23310 Investment Manager Structures 23510.1 Introduction 23510.2 General partner in limited partnership structures 23510.3 Regulation of investment managers 23610.3.1 The UK Financial Conduct Authority 23610.3.2 The US Securities Exchange Commission 23710.3.3 Dodd–Frank Wall Street Reform and Consumer Protection Act 23810.3.4 The EU Alternative Investment Fund Managers Directive 23910.4 Structures of management vehicles 24010.4.1 UK LLP 24010.4.2 US Limited Liability Company 24010.4.3 Company 24110.4.4 GP as an LP structure 24110.5 Investment manager fees 24110.5.1 Closed-ended funds 24110.5.2 Open-ended funds 24210.5.3 Transactional or monitoring fees 24210.6 Performance fees and carried interest 24310.6.1 Closed-ended funds 24310.6.2 Open-ended funds 24410.7 Internal economics 24410.7.1 Salary and fixed draws 24510.7.2 Bonuses 24510.7.3 Share and option ownership of investment company 24510.7.4 Performance fee share and carried interest 24510.7.5 Co-investment 24510.7.6 Fund investment or the GP commitment 24610.8 External ownership of investment manager groups 24610.9 Listing of investment manager groups 24610.10 Boards and committees of an investment manager 24710.10.1 Board 24710.10.2 Non-executives 24710.10.3 Executive committee 24710.10.4 Investment committee 24810.10.5 Industrialists 24810.11 Manager or adviser 24810.11.1 Permanent establishment rules 24810.11.2 Other drivers 24810.12 Family offices 24910.13 Some conclusions 24911 Taxation Principles in Funds 25111.1 Introduction 25111.2 Taxation of funds 25111.2.1 UK 25111.2.2 US 25311.2.3 EU 25411.2.4 Permanent establishment rules 25511.3 Investors 25711.3.1 UK 25711.3.2 US 25911.4 Investment manager companies 26411.4.1 Closed-ended funds 26411.4.2 Open-ended funds 26511.5 Principals of an investment manager 26611.5.1 Equity ownership of investment manager and the fund 26611.5.2 Management fees 26711.5.3 Carried interest 26711.5.4 Performance fees 26811.6 Some conclusions 26812 Regulatory Environment 26912.1 Introduction 26912.1.1 US, UK and EU regulatory environment 26912.1.2 Other regulatory environments 26912.2 UK regulatory environment 26912.3 Financial conduct authority 27012.3.1 Statutory objectives 27012.3.2 Regulation 27012.3.3 Exemptions 27112.3.4 Financial promotions 27112.3.5 Supervision of firms 27112.3.6 Supervision of individuals 27112.4 Prudential Regulation Authority 27212.4.1 Statutory objectives 27212.4.2 Regulation 27212.4.3 Supervision of firms 27212.4.4 Supervision of Individuals 27312.5 US regulatory environment 27312.5.1 The United States Securities and Exchange Commission 27312.5.2 The Commodity Futures Trading Commission 27512.5.3 The Dodd–Frank Wall Street Reform and Consumer Protection Act 27612.5.4 The Foreign Account Tax Compliance Act (FATCA) 27912.5.5 FBAR reporting requirements 27912.6 EU regulatory environment – the Alternative Investment Fund Managers Directive 28012.6.1 Background 28012.6.2 Authorization requirements for AIFMs 28112.6.3 Authorization requirements for small AIFMs 28212.6.4 Marketing of AIFMs 28312.6.5 National private placement 28412.6.6 Delegation 28412.6.7 Depositaries 28512.6.8 Capital requirements 28512.6.9 Code of conduct 28612.6.10 Transparency 28612.6.11 Leverage and asset stripping 28612.6.12 Remuneration 28712.6.13 Valuation 28712.7 Other EU regulation 28712.7.1 Basel III 28712.7.2 Solvency II 28812.7.3 European Market Infrastructure Regulation (EMIR) 28912.7.4 EU energy infrastructure proposals 28912.8 Regulation – some conclusions for alternative asset fund managers 29013 Comparisons and Conclusions 29313.1 Introduction 29313.2 Evolving structural drivers 29313.2.1 Tax efficiency 29313.2.2 Regulation 29413.3 Core structures compared 29613.3.1 Key differences between private equity funds, hedge funds and quoted funds 29613.4 The paperwork 29913.5 The actors 29913.6 The supporting actors 30113.7 What is trending? 30213.7.1 Internet 30213.7.2 Multi-immediate media 30213.7.3 Onshore/offshore debunked 30313.7.4 Change of focus 30413.7.5 Masters of the Universe 30513.7.6 Paradigm bashing 30513.7.7 Book conclusion 305Appendix I Definitions 307Appendix II Abbreviations 311Appendix III Acknowledgements 319Index 327