Offshore funds refer to funds registered outside the country where they are located，Usually established in the Cayman Islands、Offshore jurisdictions such as Mauritius or the British Virgin Islands。In today's world of economic globalization，Money moves around the world，Large PE institutions often accept funds from all over the world，However, the management regulations for foreign investors vary widely from country to country.。These jurisdictions are particularly useful for funds investing in China.，very attractive，Because they usually allow investors from different countries to participate in investments，and are not subject to U.S. or Chinese laws and regulations。
Offshore funds are usually domiciled in the British Virgin Islands、Offshore islands such as Cayman Islands and Bermuda。The fund chooses to establish in these areas，This is usually because regulations on funds in these areas are relatively loose.，At the same time, the local government exempts the fund from taxes on non-local income.，also，Some places also allow funds to be publicly offered globally after establishment.。
There are currently more than 6,000 funds of various types in the Cayman Islands。As a rising star, the BVI has opened its offshore fund market in 1998.，The number of registered regulated funds has reached more than 3,400。There are currently more than 1,600 registered collective investment schemes in Bermuda.。It should be noted that，The above figures do not include the large number of funds that enjoy regulatory exemptions under local laws.。It can be seen that funds registered in offshore islands have become one of the first choices for many funds.。
Limited partnership is the most popular form of organization for private equity funds.，More than 80% of private equity funds in the United States adopt this form，And most funds established in the United States are established as Delaware limited partnerships.，Most European private equity funds also adopt this type of organizational form.，Therefore, limited partnerships are also regarded as the key to the success of American private equity funds.。
Offshore funds in Cayman from a corporate law perspective，In essence, it is still a Cayman exempted company.，no taxes，The only difference is that it is registered through charter，and in compliance with Cayman fund-related laws and regulations) defining the company’s relationship with investors and other relevant stakeholders，and became a fund。So how to open a Cayman offshore fund account?，Can be used at any stage of fund establishment，It can be carried out as long as the company is established。General accounts will not be opened in Cayman.，Instead, priority can be given to opening in places such as Hong Kong and Singapore.。In addition, there are two types of accounts after just starting operations，One is cash account cash account，Opened by the administrator in the name of the fund，All investments are made before entering the investment account，to access this cash account，Only after the administrator's approval (KYC) can you enter the investment account。Investment accounts, of course, refer to accounts invested in other financial institutions when the fund is actually operating.。
The offshore funds referred to here，According to different establishment forms, they are mainly divided into Private Equity Funds and Hedge Funds.(Hedge Fund)Two categories。
private equity investment，即Private Equity，PE for short，refers to investing in unlisted equity，Or an investment method in non-publicly traded equity of listed companies。Sources of funding for private equity investments，It can also raise funds from unspecified members of the public.，Non-public issuance can also be adopted，Raise funds from institutions or individuals with risk identification and tolerance。Because private equity investment is risky，Insufficient information disclosure，Therefore, it is often in the form of non-public fundraising.。
Most of those who set up PE are groups with a small number of investors.，individual or family，The number of investors is limited to 15 people，The investment projects or assets held are relatively fixed and stable.。
