News

Law

Asset Management

Investment Banking

Wealth

Hedge Funds

People

Newsletters

Events

Lists

Private Equity

Offshore tax structures may become 'toxic' post-Panama Papers

Practices have drawn widespread criticism as well as the attention of governments and law-enforcement officials

The “Panama Papers” may make private equity firms less inclined to use offshore vehicles, exacerbating an ongoing move from offshore investing due to European regulations.

Firms have increasingly chosen to locate funds onshore to attract institutional investors and avoid additional tax penalties in light of European fund marketing rules under the Alternative Investment Fund Managers Directive, which came into effect in 2011.

WSJ Logo