The determinants of where Nordic private equity funds are domiciled
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- Master Thesis 
The objective of this thesis is to analyze the determinants of the choice of where Nordic Private Equity funds are domiciled. I show that there is a strong link between a country’s tax and legal environment and its ability to facilitate for international Private Equity investors. Further, I show that the Nordic countries’ tax and legal environments are misaligned with international private equity investor’s expectations. I introduce a unique data set of 122 Nordic Private Equity funds and distinguish between whether the funds are domiciled within or outside the Nordic countries. I find that there is a significant higher probability of a fund being domiciled in a foreign jurisdiction when the fund has international investors. The results are robust regardless of how foreign investor is defined. To be more precise, as soon as a Nordic Private Equity fund is considering raising capital from non-domestic investors, the fund has a significant higher probability of being domiciled outside the Nordic countries, where the Channel Islands are the preferred jurisdictions.