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Bermuda partnership to provide services for offshore funds

Date: Monday, June 14, 2010
Author: Hedge Funds Review

Boutique service provider Equinoxe Alternative Investment Services has launched the Mid Ocean emerging manager offshore platform.

The Bermuda-based company’s platform will charge fund managers less than $30,000 to set up a Bermuda segregated accounts company. The charge will include service providers, legal  and government fees and legal documentation. Setting up an offshore fund, including service provider charges, would normally cost between $60,000 and $70,000.

“It is a one-stop shop for managers starting offshore hedge funds,” said Stephen Castree, CEO at Equinoxe.

Castree said setting up with Equinoxe was cheaper because the platform cost was shared and all the services were provided under one roof.

With regulatory uncertainty many managers are delaying launches, particularly offshore. That, coupled with cost pressures as fund start ups were most often under $100 million, led Castree to conclude a low cost platform solution was needed.

“This product allows managers to get a track record offshore, rather than just delaying. People want to get a track record so they can target institutional investors,” he said.

“While the costs have not changed for setting up in the past two years, the amount of money asset managers have raised with new products has been less,” he added.

Castree also acknowledged there had been a “great response” from fund managers and offshore service providers. He said Equinoxe was in active talks with around 10 funds.

International law firm Conyers Dill & Pearman is the legal advisor for the platform and Equinoxe intends to appoint PricewaterhouseCoopers as auditor.