A large Japanese banking institution wished to create a fund of funds structure. The purpose of the structure was to pool a number of Japanese pension fund clients together to invest in a portfolio of offshore (predominantly US and Euro) private equity funds.
A Cayman general partner (GP) and limited partnership (LP) structure was established. The banking institution pooled the pension fund clients together, creating separate investors for each pension fund client (the limited partners). The GP entered into an Advisory Agreement with the investment advisor, a Hong Kong–based banking institution. In relation to the services provided by the investment advisor, the GP pays an advisory fee to the investment advisor out of the management fees, received by the GP from the LP.
Administration, accounting, company secretary, registered office, compliance services and director services.