International Private Investment Funds for owner managers are very often Limited Partnerships (LP) that have a General Partner Company GP.
The GP is the Fund Manager. The LP issues units in the LP to investors. The LP owns the Local Operating Company (LOC) that owns the oil field or the mining operation.
The GP company shares are usually owned by the owner manager as the owner is responsible for managing the operation and earning the profits that generate the return for investors. The LP/GP is a very common and typical structure for Private Equity. Unlike US domestic LP/GPs the GP company needs to be “regulated”. That means that either the GP has a director that is a regulated entity, a regulated asset manager owns shares of the GP, or the GP hires a Co Fund manger which is a regulated asset manager.
We explained elsewhere that Latin American and African projects that want to raise capital from US investors have to realize that they are viewed as high risk. The US Private Equity industry is highly US domestic. International projects run by an owner manager cannot be compared in terms of risk to large international private equity firms. These firms however are not like hedge funds operating under an exemption, they are registered with the US SEC.