These can be domiciled in either the Isle of Man or other offshore jurisdictions depending on the type of investments being made and the taxation treatment of the investors.

The Isle of Man scheme types best suited to these private arrangements are Exempt International Schemes or Closed Ended arrangements. These can be structured as companies, unit trusts, limited partnerships or contractual arrangements.

Exempt International Schemes (family office and private type investments)

Exempt International Schemes are well suited for use by small groups of investors, such as “friends and family” and private investment arrangements, where wide promotion and extensive regulation is unnecessary.

These schemes are unregulated private funds which cannot be marketed to the public and are restricted to having no more than 49 participants.

There is no requirement for a custodian or auditor to be appointed.

Closed-Ended Investment Companies

Closed-Ended Investment Companies are not subject to fund regulation in the Isle of Man as they do not provide investors with a right of exit during the life of the scheme.

As periodic subscriptions or redemptions are not possible these schemes are ideally suited to illiquid investments such as unlisted securities, venture capital, private equity or property investments where the investor are committed for a period of time typically several years.

In IPO or private equity situations these enable companies to raise money when the assets held are illiquid and thus difficult to price. These companies are ideally suited for listing on London’s Alternative Investment Market (AIM).

Related Services

Fund TypesRegulatory Structures Overseas Schemes