Previous Post
Next Post
0

Asked by

Community Member

on

in

Fundraising

Do Foreign Investors Really Need a Cayman Feeder Structure for Long-Term Gains and Privacy?

For foreign investors does one really need a cayman feeder structure ? The investor can do it themselves if they are really bothered right ? Since most returns will be long term gains there will usually be no witholding even if there is a K1 and other tax forms sent out. Is this correct understanding. Do foreign investors want it more for privacy ?
1 See in Base
0

Answered by

Community Member

on

If most of your investors and investments are in the US, then don’t bother looking at a Cayman subsidiary or shell. The advantages of these tax havens have been degraded as a result of expanding KYC and taxation regimes.

Join the Leaders of Venture 2.0

Our graduates are creating disruptive capital with exceptional expertise, ethical investing practices, and exceptional returns. Whether you're launching your first fund or scaling an established firm, VC Lab provides the tools, network, and support needed to succeed in today's venture landscape.

Apply Now
How do I start raising my first venture fund? What are the key considerations for becoming a Limited Partner?
How can I improve my emerging manager firm's deal flow? What strategies help attract institutional LPs?
How do I build a compelling investment thesis? What are best practices for portfolio management?
How can I differentiate my VC firm in a crowded market? What are the typical fund terms for emerging managers?