2014-09-11-德勤-私募基金_在华投资的架构设计_10页_118kb

Private Equity Fund Structures in China

Introduction: The private equity industry in China has seen significant growth due to economic development and the operational improvements private equity brings to companies. Regulatory challenges persist, but proactive tax assessment and risk management are essential for achieving investment returns and managing fund structures.

Fund Structure Overview: A typical fund structure includes a fund vehicle for receiving capital, fund investment managers who earn management fees and carried interest, passive investors such as government funds or institutions, and special purpose vehicles (SPVs) for operational or legal purposes. Fund managers have the authority to act on behalf of the fund.

Types of Funds: There are three main categories based on location and investor profiles:

• Pure offshore non-RMB funds: Established outside China with only foreign investors.
• Foreign invested RMB funds: Based in China with both foreign and domestic investors.
• Pure domestic RMB funds: Located in China with no foreign investors.

Key Considerations: When setting up funds, factors like jurisdiction selection must balance business, legal, regulatory, and tax environments, including tax treaties and the tax profiles of fund managers and investors. Tax implications are vital for cost management and risk mitigation.

Conclusion: Understanding the cumulative impacts of business, legal, and tax factors is crucial for successful fund structuring and achieving desired investment outcomes.