An offshore location sets up it's laws to simplify the taxation and legal issues, like a nice API joining complex systems.
Funds are set up in offshore locations to cut the "gordian knots" of tax and securities laws, within a stable country that has skilled legal and administrative infrastructure.
Taxation and securities laws for direct investment between different countries/states are complex, often unfair, and can change unpredictably.
The fund also needs to avoid getting taxed unfairly and other liabilities. For example countries have laws that would tax the whole fund if one citizen is a minor investor (which is why a fund in say Delaware might only accept foreign investors). Dual citizenship is another hideous complexity.
Some locations or funds allow countries to "look into" investments by their citizens and corporates, so are not necessarily secret at the government level.
Funds are set up in offshore locations to cut the "gordian knots" of tax and securities laws, within a stable country that has skilled legal and administrative infrastructure.
Taxation and securities laws for direct investment between different countries/states are complex, often unfair, and can change unpredictably.
The fund also needs to avoid getting taxed unfairly and other liabilities. For example countries have laws that would tax the whole fund if one citizen is a minor investor (which is why a fund in say Delaware might only accept foreign investors). Dual citizenship is another hideous complexity.
Some locations or funds allow countries to "look into" investments by their citizens and corporates, so are not necessarily secret at the government level.