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<h1 class="text-4xl md:text-5xl font-bold mb-6">ADGM Structuring for US Deals</h1>
<p class="text-xl text-gray-600 mb-12">The Abu Dhabi Global Market (ADGM) is an international financial center operating under English Common Law. For US sponsors, it is the premier jurisdiction for structuring UAE capital.</p>

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    <h2>Why ADGM over Delaware or Cayman?</h2>
    <p>While Delaware remains the gold standard for the underlying US operating company, and Cayman is traditional for offshore pooling, ADGM offers specific advantages when raising capital from Abu Dhabi entities:</p>

    <ul>
        <li><strong>Familiarity for LPs:</strong> Local institutions (like <a href="/sovereign-wealth-funds/">SWFs</a> and <a href="/family-offices/">Family Offices</a>) prefer committing capital to entities regulated in their home jurisdiction.</li>
        <li><strong>Common Law Framework:</strong> Unlike mainland UAE, ADGM directly applies English common law, ensuring US lawyers and local LPs are speaking the same legal language regarding fiduciary duties and shareholder rights.</li>
        <li><strong>Tax Treaties:</strong> The UAE has an extensive double taxation treaty network. While the US-UAE treaty situation is complex (utilize our <a href="/tools/tax-withholding/">Tax Tool</a>), an ADGM SPV often provides a tax-neutral pooling vehicle.</li>
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    <h2>Common Structures</h2>

    <h3>1. The ADGM Feeder Fund</h3>
    <p>A US General Partner establishes an ADGM feeder vehicle. Abu Dhabi LPs commit capital to the feeder, which in turn aggregates the capital and commits it to the Delaware Master Fund.</p>

    <h3>2. The Co-Investment SPV</h3>
    <p>When an LP wants direct exposure to a specific US asset (see <a href="/us-deal-criteria/">US Deal Criteria</a>), an ADGM Special Purpose Vehicle (SPV) is formed. The LP funds the SPV, and the GP manages it, deploying capital directly onto the US company's cap table.</p>
    <p><em>Cost modeling:</em> You can estimate the setup and maintenance costs using our <a href="/tools/adgm-setup-cost/">ADGM SPV Cost Estimator</a>.</p>

    <h2>Common Mistakes</h2>
    <ol>
        <li><strong>Ignoring Economic Substance Regulations (ESR):</strong> ADGM entities must demonstrate adequate economic substance in the UAE. Shell companies with no local directors or activity will face penalties.</li>
        <li><strong>Misunderstanding the Regulator (FSRA):</strong> If you are actively marketing and managing a fund within ADGM, you must be authorized by the Financial Services Regulatory Authority (FSRA). A simple SPV is easier, but fund management requires licensing.</li>
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        <h3 class="mt-0 text-xl">Actionable Advice</h3>
        <p class="mb-0">Do not attempt to pitch a Middle Eastern institutional LP solely with Cayman docs. Come prepared with a memorandum outlining how you will utilize ADGM to facilitate their commitment.</p>
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