In an article titled, ‘ Lots More Offshore‘, the June 2016 issue of China Business Law Journal discusses the growing trend of private Chinese companies and High Net Worth Individuals investing in offshore financial centers. The Cayman Islands, the British Virgin Islands (BVI), Bermuda, Guernsey and Jersey are the popular offshore centers for Chinese investors.
DMS Managing Director Don Ebanks was interviewed for this article and his insights on the Cayman Islands as a premier financial center are included.
He says DMS historically worked with US-based asset managers, "but currently over 8% of the companies and funds we work with have managers based in China, with a further 7% in the region that largely have a focus on China-based or linked assets".
He added: "Every asset manager wants good performance and may have investors who seek a particular risk profile, but reviewing a fund based in a 'new' jurisdiction is costly and carries risks from the perspective of a knowledgeable investor. Experienced investors will typically expect to see a Cayman company used for a hedge fund or private equity fund. A fund based in Ireland or Luxembourg may be used if distribution in the EU is a significant part of the fund raising strategy."
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