Today there are many offshore jurisdictions competing for hedge fund business. The most popular of these are the Cayman Islands and British Virgin Islands (BVI). This reflects the relative ease of incorporation and regulation in these jurisdictions. Bermuda remains a respectable, if more expensive, alternative. Recent developments have centred around Luxembourg, which has followed the example of Ireland in allowing for the establishment of hedge funds in a more heavily regulated environment.
When comparing possible jurisdictions, the client should consider:
- Reputation
-Degree of local regulation
- Taxation
- Costs
- The ability to obtain a stock exchange listing
- Local infrastructure.
