JTC is making it easier than ever before to expand across borders
For successful investment managers, there comes a time when it makes sense to move beyond the U.S. market. Whether you’re looking to deploy capital overseas or attract foreign capital for U.S.-based investment projects, there are a lot of benefits to expanding your reach, but just as many pitfalls.
Firms may be hesitant because they worry about a potential minefield of regulatory and compliance issues, and think international expansion must be impossibly complicated. JTC has capabilities and solutions that can make the whole process easier.
Is now a good time to expand globally?
The United States may be poised to see an influx of investment from overseas, particularly in the impact/ESG space, thanks to policy changes from the Biden Administration. If you’re unable to attract foreign investment, you’ll be missing out on a lot of opportunities.
To do so requires setting up a foreign-domiciled fund in order to accept capital you wouldn’t ordinarily have access to. Choosing where and how to establish a suitable and investor friendly fund structure can be a complicated decision with many challenges. You’ll also need to decide who’s going to handle the day-to-day administration of the fund, including investor onboarding, accounting, document management, and the always-intimidating regulatory and compliance reporting.
It’s difficult to gain the trust of foreign investors, making transparency and third-party oversight extremely valuable. JTC can help clients select the right domicile for receiving foreign investment.
While some investment managers may be looking to attract foreign capital, others are looking to deploy capital abroad to diversify their investment portfolio. When U.S.-based investment managers wish to deploy capital overseas, they have a few structural options, the most common of which is a foreign specialty purpose vehicle, or SPV, and choosing the right vehicle is important. Administrative responsibilities you need to think about include corporate governance, board & transaction support, global domiciliation, escrow and other treasury related services.
How do administrative needs change as you expand?
One of the most important decisions you’ll make will be whether to handle administrative functions in-house or use a third-party administrator. Recent data shows that growing firms switch administrators much more often than larger firms as their needs continually change, so picking the right administrator now can save you a lot of headaches down the road.
As your local to global growth partner JTC offers custom-built solutions to go with a global reach and experience in regions around the world, meaning you don’t have to choose between hands-on support and the ability to scale. Having a physical presence in target areas means not only will you get expertise in all the jurisdictional complexities, but also representatives on the ground who understand the investor base you are planning to engage or the target you are trying to acquire.
You’ll need specialized regulatory experience, enhanced reporting capabilities, a deep understanding of the nuances of global investment, and a technology platform that provides top-level security for investor communication and document sharing. Luckily, these are the areas in which JTC excels.
Whether you’re planning to attract foreign investment or deploy capital abroad, JTC is perfectly situated to help you scale and grow, and the process to get there may be much easier than you realize.
JTCs’ US Fund Administration solutions utilize a uniquely scalable technology platform that features built-in compliance, data security, automated reporting and enhanced transparency for investors and private equity managers.
The result? Greater efficiency, reduced operational risk and higher investor confidence, all of which allow you to focus on what you do best: raising capital and making prudent investments.
Learn more about our Local to Global capabilities and read about how we took a US Investment Firm Global!