Fund structuring

Fund structuring is the legal, fiscal and economic configuration of a fund, taking into account the features and requirements of the fund company (manager requirements) and the premises of the potential fund investors (investor requirements). Structuring or configuration is the first stage in the value chain of a property fund. The interests of other stakeholders are also taken into account. Fund structuring begins at the level of investors.

Possible and typical investor requirements of fund structuring include:

  • Meeting specific risk/return expectations
  • Transparency
  • Minimisation of conflicts of interest
  • Performance-oriented remuneration of fund managers

The deliberate selection of target investors influences the further structuring of the fund. Different fund vehicles are selected depending on the desired group of investors. A suitable company form must also be chosen. This must be consistent with the investment objectives of the fund and the investors. There are significant differences in an international context in particular. Legal and tax conditions must be adapted to the respective fund type accordingly. Different service providers that operate in the field of fund structuring usually assist in this.

In property industry practice, fund structuring is performed by both the fund companies themselves and by qualified service providers. In particular, examples are tax consultants, lawyers and specialised consultancies.1

  • 1 Vgl. Homann, Jörg (2011): Aufbau einer institutionellen Fondsstruktur. In: Schumacher, Chris-toph; Pfeffer, Tobias; Bäumer, Hubertus (Hrsg.): Praxishandbuch Immobilienfondsmanagement und -investment, Köln, S. 237-249.
: 18.09.2019