If you’re pooling your wealth in order to invest on a collective basis, keeping track of your assets can be a real challenge. Often the assets are held with different investment houses, in different jurisdictions around the world. Other investors in your pool may be spread across the world, each with their own investment needs and tax planning considerations. Such circumstances make it hard enough just to monitor investment performance, let alone manage ownership and take account of the succession law issues in different countries.
The traditional response has been to split up the group’s wealth into different holding structures. But by setting up a private fund structure, it’s possible to consolidate investment reporting across asset types, investment managers and custodians. Private funds can enable you to keep the group’s wealth together while satisfying the needs of individual group members.
Consolidate your wealth
A private fund is a closed-ended structure set up for a specified group of investors. The units or shares of the structure are only accessible to the participating investors or the wealth structures administered for them.
Private funds have proved popular with wealthy families, investment club members and other partners looking to invest in a range of asset classes on a collective basis. Private funds provide a way to consolidate assets and gain a clearer view of the collective pool of wealth.