19 May. 2020
Alternative Investment Fund Manager (“AIFM”)
The asset management sector is constantly evolving and asset managers are increasingly looking for efficiencies to stay competitive. We can help you streamline your operations through a single relationship, delivering fund administration, middle office, banking, depositary, custody and Alternative Investment Fund Manager (“AIFM”) services under one roof.
Our offering is known as “third party management” or a “third party platform” for our umbrella fund structures.
We make available a third party AIFM and a fund platform or standalone funds in various jurisdictions.
Third party platforms are generally umbrella fund structures established by AIFMs, which allow other previously unaffiliated (sub) investment managers/advisers to essentially “plug and play” by joining the platform with their own separately managed sub-fund. The sector has grown massively in recent years as the cost and complications involved in a new launch have expanded, with fund service providers wanting to only on-board larger funds as stand-alone structures, the costs of AIFMD implementation and as managers have sought to access new markets for distribution through the use of more complex onshore regulated products rather than the traditional offshore routes previously favoured.
Advantages
- Speed to market: use of an existing platform will typically facilitate a faster launch, as there will be no need for a new AIFM to be authorized in conjunction with the project
- Cost savings: is one of the main advantages of the platform route, as certain fixed overheads and costs (such as directors’ fees) are spread across the entire platform. A platform can also take advantage of economies of scale or economic efficiencies to obtain lower fee rates from service providers
- Marketing and distribution: EU marketing passport, plus many overseas jurisdictions look favourably on EU funds being sold in their markets (subject to their own marketing regimes). Furthermore, market participants and investors look favourably on the fact that the third-party manager/promoters will undergo extensive due diligence by the AIFM as part of the on-boarding process
- Know how: other benefits of platforms that asset manager’s value, include obtaining access to the AIFMs general know how regarding the launch process and product specifics as well as local knowledge. This is especially valued by those using platforms in order to enter into the fund space for the first time, such as property managers and developers
- Responsibility for compliance and corporate governance: on a longer-term basis, a key attraction is the manner in which platforms take primary responsibility for ongoing compliance, regulatory and corporate governance requirements inherent in the post-launch operations of AIFMD compliant funds. This essentially frees the manager/promoter to focus on actual portfolio management and distribution.
Our AIFM services include the following activities:
- one-stop shop for all AIFMD requirements
- minimising of own management cost
- leveraging on a team of experts with experience of AIFMD, processes and continuity
- organizational skills and expertise with AIFMD specialisation
- leveraging off established market providers located in the EU
- cost effective in regards to other options available on the market
- help with distribution/add on services
- investment management and distribution in EU through accessing our passport
Oneworld Platforms RAIF/QIAIF
Our platforms in Ireland, Luxembourg or Cyprus provide you a cost-effective option to launch your own fund in 3-4 weeks with a fully compliant AIFMD structure. This platform allows you to rent a compartment (sub-fund) in an already existing fund structure (umbrella fund) without requiring your own management company or team to run it.
Advantages
- well-established highly flexible investment vehicles which grants investors the option to invest in a large variety of assets
- the option to set up a variety of sub-funds with:
- different investment policies
- different investor types
- different fee structures
- benefit of the AIFM-passport for distribution
- segregation of liability between sub-funds
- a favourable tax regime and Double Tax Treaty benefits
- very limited diversification requirements
- sub funds can be established based on the needs of the fund initiator, the investors and the service providers requirements.