Raising capital from offshore investors can unlock valuable funding opportunities for U.S. lenders and real estate funds, but it comes with added layers of tax, compliance, and regulatory complexity. From ECI exposure and withholding tax risks to strict AML/KYC requirements, sponsors must navigate challenges that go far beyond basic securities law. This article outlines key risks and practical structuring strategies, including the portfolio interest exemption and feeder-blocker models, to help sponsors attract international capital while minimizing tax burdens and compliance pitfalls.
Offshore Capital Risks: A Tactical Guide for U.S. Lenders and Fund Sponsors Read More »