Energy investments for accredited investors
We make our investments available to accredited investors through two types of vehicles:
- Private master limited partnerships
- Offshore mutual funds
Master limited partnerships: Offering a combination of growth and income
We act as the general partner for our limited partnerships. These vehicles are nearly identical to master limited partnerships (MLPs) in that they offer high dividend yields that receive favorable tax treatment as well as long-term capital appreciation. The primary difference is that our private limited partnerships are not listed on a publicly traded exchange.
Our funds typically appeal to investors who are seeking
- A tax-efficient way to generate investment income while also capturing capital appreciation
- A way to invest in a vehicle that is not highly correlated to the stock market
- A means to strategically invest in highly attractive niche segments of the energy sector without being subject to the volatility often associated with commodity prices
Currently, our Strategic Pipeline Income Fund is open to accredited investors. Read more about the fund, its benefits, and how to invest.
Offshore mutual funds: Offering tax benefits, confidentiality, and performance
Offshore mutual funds are based in, and managed from, jurisdictions outside the investor’s home country. These types of investments can offer investors access to international markets and major exchanges.
Offshore mutual funds have location requirements:
- They must be incorporated in a foreign location
- Only investors who are not residents of the fund’s jurisdiction can invest in the fund
As with traditional mutual funds, investors participating in offshore mutual funds will realize gains or losses in proportion to the capital they initially invested.
While several potential benefits to investing overseas exist, tax breaks are frequently one of the most important advantages for investors. Offshore mutual funds are usually established in countries that provide significant tax benefits to foreign investors. As a result, these investors are often able to reduce or even eliminate the taxes they pay on the fund’s reported capital gains, dividends, and other distributions, which can boost performance. In some cases, offshore-fund assets are excluded from estate tax calculations.
Popular countries for offshore investments include the Isle of Man, the Bahamas, Bermuda, and the Cayman Islands. It is important to note that offshore funds may have less operating overhead (and thus lower fees).
Another key advantage associated with offshore mutual funds is that some foreign countries have strict regulations around the confidentiality of investments, which can offer financial and legal benefits for high-profile investors.