Isle of Man woos private equity investors

THE ISLE of Man government is wooing fund managers with a new fund structure for private equity investments.

The island’s government has announced the launch of a new “specialist fund” structure which would be exempt from VAT and not carry as much of an administrative burden as current funds.

The government said that the proposed new structure would attract fees levied by Isle of Man-based fund administrators or investment managers. Each fund would need a regulated administrator, but would not need a mandatory asset manager or custodian. The fund would also be zero-rated for corporate tax, as would any Isle of Man-domiciled administrators or managers.

The island’s minister for economic development, Allan Bell, said: “The Isle of Man offers an excellent environment for new fund formations and for niche investment managers. This proposition allows asset managers to take advantage of a lower cost base in a tax-friendly environment.”