Case Studies

Using the PIF to Enable Generational Wealth Flows Within a Family

Whilst ultimately owned by the primary family structure, a family utilised the PIF to segregate assets into vehicles that enable different investment strategies in addition to varied control mandates to be implemented.

For example, some offering full control, whereas others under a discretionary mandate, involving advisors for key decisions. This enabled the smooth transition of wealth, from one generation to the next.

Using the PIF to Enable PE Investment into European Businesses

A UK-resident non-domiciled individual was advised to establish a Guernsey Trust, prior to becoming UK-domicile for IHT. The individual also wanted to launch a private equity fund to invest into European businesses.

As part of this, he wanted to also establish an incentivisation structure for the professionals running the PE fund. A Private Investment Fund was chosen to structure a Limited Partnership, utilising Route 2. The LP was in one trust, and the GP was in another trust.

After running the operation successfully for 2 years initially, the client then invited members of his family to join the structure, via Route 3.

Using the PIF to Streamline Pooled Investments

The Route 2 PIF was recently selected by a small group of experienced investors who had for many years invested personally as an investment club.

Seeking to capitalise on their strong long term returns, they opted for a Guernsey Private Investment Fund due to Guernsey’s strong regulatory regime and reputation.

Through forming the fund structure they were able to formalise the investment processes and better manage a single pool of investments.