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While the general characteristics of impact investments are consistent across borders,
any cross-border transaction may raise legal, regulatory, tax, and accounting issues that can vary greatly depending on the jurisdiction where the investment is being made. The structure and documentation of an investment in one jurisdiction may differ from the way the deal would be done in the investor’s home jurisdiction. Care must be taken to understand the risks and customs in the local market in order to understand the best means to structure a cross-border impact investment.
Consulting local counsel early in the investment process can be a vital step to ensuring that an investor’s cross-border impact investment is structured efficiently and effectively.
The following local counsel checklist is a tool for an investor looking to engage local counsel in cross-border impact investments.