Hedge fund formation
Offshore Incubator Fund
The British Virgin Islands (BVI) is an attractive jurisdiction for hedge funds. The legislative structure in the BVI is modern and internationally recognized.
For start up funds, some managers choose to form an incubator fund. The important point is that an incubator fund is not simply a low-cost version of any other hedge fund. It has specific regulatory requirements and limitations that need to be understood before deciding whether it is appropriate. First, an incubator fund can have no more than 20 investors. Second, each investor must generally make a minimum initial investment of US$20,000. And third, the fund's net assets cannot exceed US$20 million.
