Investment funds tax

Overview

We are regarded as one of the leading practices for the formation of domestic and pan-European investment funds.

We advise on the full range of investment funds, including private equity funds, real estate funds, special situation funds, debt funds, hedge funds and retail investment funds. In all cases, we ensure that the appropriate fund vehicle is chosen and that the structure takes account of the requirements of all key participators.

We have particular expertise in relation to investment funds structured as limited partnerships. While, historically, limited partnerships have mainly been used for private equity funds, we are increasingly encountering their use for real estate, special situation and debt funds.

We also advise our clients with the implementation of their management or advisory structure. We have significant experience in the use of the limited liability partnership as the vehicle of choice for fund management businesses, converting a number of managers from corporate to LLP form. We advise a large number of fund managers in relation to their ongoing house matters.

We are also familiar with the full range of corporate fund structures and have structured funds using Irish section 110 securitisation companies, Luxembourg SOPARFIs, SIFs and SICARs and even UK limited companies, sometimes in conjunction with a parent limited partnership fund structure as mentioned above.

Our fund structuring offering is complemented by our deal structuring expertise. In determining investment fund structures, we ensure that the fund will be able to invest in its chosen asset class and target jurisdictions. This usually involves a combination of vehicles in the fund structure.

This combination is most often seen in the special situation and debt funds that we structure. For these funds, we are familiar with specific tax issues that the funds present, such as the need to pursue both investing and trading strategies without compromising the tax benefits of a pure investing structure.

We also have an active and highly regarded real estate fund practice. For real estate funds, the appropriate fund structure depends on the type of investors, the jurisdiction of the investments and the nature of the funds activities (investing, trading and/or developing).

We also apply our expertise developed in relation to more traditional asset classes in new areas. We have recently set up funds investing in assets as diverse as carbon credits, South American real estate and UK defaulting mortgages.

We also have market-leading expertise in all aspects of retail fund taxation and act for a number of sponsors in relation to the structuring of OEICs and unit trusts.

Recognition

  • "'Very responsive, very good knowledge both breadth and depth-wise, and very good understanding of what we're trying to achieve and helping to facilitate that'."

    Chambers UK 2015

  • "This firm continues to earn its fine reputation in private equity matters, with many market sources quick to single out this area as a key strength. However, the tax practice is also active in the corporate, funds and restructuring spheres. The team regularly represents various domestic and multinational organisations, as well as investment funds and high net worth individuals."

    Chambers UK 2012

  • "Funds work and private equity are core strengths of the 'excellent' tax team at Macfarlanes LLP."

    The UK Legal 500 2010