In this article we will be discussing different ways of investing in JPFs & family offices, as well as how investments like these can be structured. We’ll also be looking into how the JPF regimen can be applied to entities created by members of families.
How Can JPFs Be Structured?
JPFs can be commercial entities (which includes cellular services providers), mutual funds or LLCs.
First Things First
Full consultation requires indepth analysis of all individuals participating in the investment-related structure.
If it functions as an investment-oriented fund and has been created on the one-office-for-one-family basis, it will most likely be considered an exception, particularly given the roles played by its participants, as well as the bonds uniting them.
Evaluating the exact character of the relationship between individual participants, as well as their capacity for relying on benefits or privileges, requires exercising extreme deliberation.
Due to its all-encompassing definition it may refer to blood ties, as well as other kinds of relations (e.g. children that have been adopted or children that have been born out of wedlock).
Family Offices Having a Multi-Family Structure
Family offices that have a multi-family structure can be excluded, as well. That particularly applies to cases when they represent joint ventures in which different families act as co-founders. If this is the case, one needs to carefully study all the particulars of an agreement to make sure that they can be classified as joint ventures.
If the goal of the entity is to let families merge their capitals with 3rd parties of their choice or if it allows for joint investment by the staff of a family office, it will most likely be identified & regulated as a JPF. Frequently, structures like these hire external managers to manage them. If that is the case, a JPF will have to be compliant with much more rigorous regulatory requirements.
This, in turn, will eliminate the necessity of having to abide by legislation governing CIFs and enable providers of services on behalf of the fund to avoid the need to comply with licensing requirements.
Once respective applications have been filed with a JPF regulator, a JPF can be licensed as per streamlined procedure within 48 hours.
If you have any additional questions regarding this topic, you can always contact IQ Decision UK. Our highly qualified specialists will help you with matters related to investing in private funds, as well as preparing documents necessary for opening a private fund or family office.