Fund Structuring in 2025: Real-World Strategies from Ocorian’s Dallas Breakfast Club
Fund structuring isn’t getting easier – it’s getting more complex. From tax implications to global expansion, managers are under pressure to build smarter, leaner, and more scalable structures. At Ocorian’s latest Dallas Breakfast Club, a panel of legal, tax, and governance experts cut through the noise with practical, no-nonsense advice for fund managers navigating today’s challenges.
Moderated by Amy Meza, Director of Fund Accounting at Ocorian, the panel featured:
- Nathaniel Luker – Partner, Ocorian Law (Cayman)
- Shaun McLean – Partner-in-Charge, Tax – Financial Services, Weaver
- Stan Polit – Partner, Katten Muchin Rosenman LLP
- Denise Viedt – Senior Paralegal, Ocorian
Start Smart: Structure with Purpose, Not Complexity
Too many emerging managers fall into the trap of copying legacy structures from previous firms. The result? Inflated org charts and unnecessary entities that slow down operations and confuse investors.
Key takeaways:
- Don’t over-engineer. More entities ≠ better governance.
- Start with the fund’s purpose. Build the structure to serve that goal—not the other way around.
- Engage early. Legal, tax, and compliance partners should be looped in before formation, not after.
“Death by org chart is real,” the panelists warned. “If you can’t explain your structure in two minutes, it’s probably too complicated.”
Survey Snapshot: Optimization Isn’t Optional
Our May 2025 survey of North American fund managers revealed:
- 64% say their operating model needs improvement
- 93% expect to expand into 10+ markets
Translation? Structuring decisions made today must be globally scalable and future-proofed.
Global Capital, Local Expertise
With capital increasingly flowing from Europe, Asia, and the Middle East, managers must think beyond U.S. borders. The panel emphasized the importance of jurisdictional awareness and early offshore engagement.
Insights:
- Cayman structures remain popular for their transparency and flexibility
- Tax implications vary widely – don’t assume U.S. rules apply globally
- Offshore counsel should be involved before documents are drafted
“Timing is everything,” the panelists agreed. “Engaging offshore legal too late can mean rework, delays, and missed opportunities.”
Third-Party Providers: More Than Just Outsourcing
Outsourcing isn’t just about saving money – it’s about accessing expertise and staying focused.
The panel’s advice:
- Communicate clearly. Multiple providers mean more moving parts—alignment is critical.
- Use experienced directors. They bring governance insight and market credibility.
- Know your limits. Trying to do everything in-house can dilute performance and increase risk.
“Outsourcing is strategic,” they said. “It’s not a cost center – it’s a capability enhancer.”
Final Thought: Structure for Where You’re Going, Not Just Where You Are
Fund managers in 2025 need to think globally, act strategically, and build with purpose. Whether you're launching your first fund or scaling into new markets, the message from the Dallas Breakfast Club is clear: structure smart, engage early, and stay agile.
If you would like to learn more about our Dallas Breakfast Club or attend the next one, contact Lynne Westbrook, Head of U.S. Fund Services at [email protected]