If you are interested in establishing investment funds in The Bahamas, learn about the different types of funds and how they work. Whether you are an investor or someone who wants to establish an investment fund, there are many options that may fit your needs.
Different Types of Investment Funds Available
In The Bahamas, you can form and invest in several different types of investment funds. These include the standard fund, which usually has a public offering at some point and often operates as a vehicle for retail investments. You could choose a professional fund for sophisticated investors that can launch very quickly. Also, you might encounter recognized foreign funds, which are already licenced or registered in different jurisdictions and want to begin operating in The Bahamas. Finally, consider the SMART fund, with seven templates meeting different business needs and adjusted for the appropriate risk levels.
Different Structures for Investment Funds
Investment funds can be structured as one of several types of business entities. Some funds are structured as international business companies, which are flexible companies that do not have to have local directors in The Bahamas. Some are structured as segregated accounts companies, which (true to the name) have several different accounts set up keeping different assets and liabilities separate. As a result, if one account is losing money, it will not affect another account that is doing well.
Investment funds can also be structured as exempted limited partnerships, unit trusts, or investment condominiums. Investment condominiums, or ICONs, are agreements to pool assets and then operate as investment funds. They are becoming increasingly popular in The Bahamas.
If you are considering investing in an investment fund, ask which type of business entity the fund uses. If you are considering forming an investment fund, decide which type of entity you will use to structure your fund.
How Are Investment Funds Licensed?
All investment funds can be licensed by the Securities Commission of The Bahamas. Unrestricted Investment Fund Administrators that meet certain legal requirements can also license some investment funds if the funds are offered only to specially accredited investors. For example, professional funds open to sophisticated investors are usually licensed by UIFAs.
To find out more about investment funds in The Bahamas, visit Gonsalves-Sabola Chambersonline or call the office at +1 242 326 6400.