Fund Advisory and Reporting
It is important that investment managers structure their investment funds carefully to minimise tax leakages. Poorly designed fund structures can affect returns for limited partners (LPs), the fund as a whole, and fund executives.
A&M’s Fund Advisory and Reporting team structure funds for large venture capital (VC), private equity (PE), credit, infrastructure and real estate funds, as well as mid-tier funds and first-time entrants into the space. We can also work alongside private clients who are seeking similar solutions including emerging fund managers who are considering spinning out of a large fund manager. The team also provides a market-leading technology-driven ‘whole of fund’ tax reporting process, allowing us to effectively service compliance and reporting obligations for the whole of the fund.
The service in depth
Our team, over the past few years, have advised on the establishment of c.50+ funds across VC, PE, credit, infrastructure and real estate in a variety of jurisdictions including the United Kingdom, Luxembourg, France, The Channel Islands and The Cayman Islands.
Our approach on fund establishment projects involves understanding the specific needs for the structure of the fund including the anticipated jurisdiction of investors and whether the management team will hold co-investment and carried interest entitlements in the fund, and developing a structure for the fund to meet these specific needs.
Our team works closely with our M&A Tax colleagues to ensure that the acquisition and disposal of fund investments are structured tax efficiently for all stakeholders including management with co-investment and carried interest entitlements in the fund.
Our approach to fund reporting can be adapted to suit all types of investment funds as we follow each stage of the distribution waterfall. Ahead of fund realisations we can provide bespoke personal tax advice to individuals and their families to structure returns tax efficiently.
Our fund reporting service covers corporate and partnership tax returns for fund and advisor entities, as well as creating bespoke investor reports for LPs and executives detailing investment returns from the fund. These reports includes detailed filing guidance to make relevant disclosures and elections for UK personal tax purposes.
To deliver a best-in-class reporting service, we undertake a ‘real-time’ analysis of all returns made through the fund structure, ensuring that compliance milestones are planned and delivered through the year in advance of the tax filing dates ensuring LPs and executives can plan for potential tax due. Spreading the workload throughout the year prevents crunch periods for in-house teams rather than delivering reporting immediately before the deadline.
Being technology-led allows us scale the service as our clients’ businesses grow and our reporting solution also mitigates tax risk across the fund with a consistent approach throughout the compliance process.
| Did you know? A&M’s fund advisory service works across borders A&M’s fund advisory and reporting specialists have worked with funds based in the U.K., the Channel Islands, the Cayman Islands, Luxembourg and other jurisdictions. |
Why A&M?
A&M’s senior professionals boast in-depth understanding of fund structuring principles and best practices, at the investment level through to the needs of executives, the fund itself, and LPs. All team members work across a broad range of tax specialisms including all fund compliance, fund structuring and private client services.
For more information, please contact our experienced professionals.
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