STARTING AN ALTERNATIVE FUND SERIES: ESTABLISHING AN ONSHORE FUND – TAX & STRUCTURING
Overview
Domestic structures can be complicated and although tax should not drive an investment decision, it can be a major contributing factor to initial investment and client happiness at year-end. This panel will feature Jason Chertin and Michael Friedman of McMillan LLP, and 1-2 fund managers who have used various structures.
This is part of our Starting an Alternative Fund series to be held throughout 2019. The topics this series will cover are the following:
Establishment:
- Structure and registration of the Fund Management Company – including roles, tax planning, proficiencies, capital requirements, creating a business plan, and (important!) managing expectations of investors and those starting the company
- Onshore fund structuring and tax planning – types of funds (including liquid alts) and costs
- Offshore fund structuring and tax planning – jurisdictions, why do so, advantages and disadvantages of structures, cost of going offshore; as well as how to engage service providers in various jurisdictions
Mid/back-office:
- Choosing service providers – primes, legal, auditor, fund administrator
- Compliance and Operations facets of establishing and maintaining a fund management company and various funds
- Finding staff/talent and compensation structures
- Getting ready for operations audits – including prescribed ones by securities commissions and those performed by out-sourced due diligence companies and in-house talent of potential investors
- Specific service providers and niche functions – which might include software, performance reporting (solutions), and trading venders; class action services, Fundserv back-office functions, Managed Account Platforms, due diligence services, and listing funds on an exchange
Sales & Marketing:
- Selling into the Retail channel – true retail/liquid alts as well as Accredited Investors/Offering Memorandum product (will include a primer on liquid alts and the market to date)
- Selling to sophisticated investors – including the Retail Accredited Investor channel, multi and single family offices, and institutional investors such as Canadian and foreign sovereign wealth funds, foundations & endowments, and public & private pension plans (both direct and through investment consultants)
- PR and exposure – honing your message and how to use earned adverting (aka free PR) to deliver it to the right audience (includes use of social media)
- Public opinion and industry surveys – using broad and targeted surveys to deliver actionable data for use in product design, pricing, and messaging
Where
Dial-in details will be sent once registration is complete
CAASA’S Virtual PlatformSPEAKERS
Jason Chertin
Partner
McMillan LLP
Michael Friedman
Partner
McMillan LLP
Hasnat Mahmood
Partner, CCO, CFO
Algonquin Capital
Michael Garofalo
Senior Manager, Audit, Financial Services
KPMG
Jason Chertin
Partner
McMillan LLP
Jason Chertin is the Co-Chair, Investment Funds and Asset Management at McMillan LLP. A significant part of Jason’s practice encompasses working with investment fund managers, portfolio advisors and dealers in establishing, marketing and maintaining investment products, including privately offered domestic and offshore funds, publicly offered mutual funds and other exchange-traded funds. Jason also provides ongoing advice to Canadian and non-resident managers with respect to registration and compliance obligations, and assists clients with regulatory reviews and audits.
Michael Friedman
Partner
McMillan LLP
Michael Friedman is the leader of the National Tax Practice at McMillan LLP. Michael specializes in counselling investment funds and asset managers on the establishment and administration of tax-efficient investment vehicles. Michael regularly guides the formation of institutional and targeted structured products catering to a wide range of domestic and offshore investors. Michael also advises a large number of domestic investment managers retained by international investment funds. Michael has been an active member of the McMillan Tax team that has stood at the forefront of the development of tax-efficient investment fund structures, including Master-Feeder funds, switch funds, and specialized return funds.
Michael has broad experience, and has enjoyed great success, representing clients in resolving tax disputes with both the Canada Revenue Agency and the provincial revenue authorities. Michael has appeared before both the Tax Court of Canada and the Federal Court of Appeal.
Hasnat Mahmood
Partner, CCO, CFO
Algonquin Capital
Hasnat brings a wealth of compliance, finance, and operations experience to the Algonquin team.
He began his career working for the ‘Big 4’ audit firms in Bermuda and Canada where he focused on financial statement audits of alternative investment funds and investment managers. Most recently, he held the position of Director of Compliance with a Securities Dealer and Investment Fund Manager, where he was responsible for the day-to-day operations of the firm’s regulatory and legal compliance function.
Outside of work, Hasnat is an avid runner and a fan of the EPL and NFL
Michael Garofalo
Senior Manager, Audit, Financial Services
KPMG
Mike is a Senior Manager in KPMG’s financial services audit practice based in Toronto. His focus is on hedge fund clients covering various strategies. He recently joined the Toronto firm from the Cayman Islands where his portfolio of clients included private equity funds, fund of funds, venture capital funds and commodity pools. Mike also has experience with insurance companies, brokers and captives. His experience in these industries focused on providing clients with audit and accounting related services.
Mike is also a Past President of the CFA Society Cayman Islands which promotes ethical and professional standards within the investment industry, encourages professional development through the CFA Program, and facilitates the open exchange of information and opinions. He has also contributed to various Cayman Islands Government discussion papers through his role in the CFA Society and as a committee member of the Cayman Islands Society of Professional Accountants Public Practice Committee.
