The Benefits of appointing a third-party for Alternative Investment Fund Management “AIFM” services
Due to the complex and ever evolving fund industry, using a third party AIF Manager (AIFM) in order to ensure competitiveness and regulatory compliance is now a standard market practice.
Asset managers and fund initiators looking to domicile and market their funds in Europe can rely on Oneworld Plus Management for outsourcing of the AIFM functions. This is the quickest, and most cost effective route to cross-border distribution of your Alternative Investment Fund. Doing so you are able to transfer the bulk of the administrative burden of AIFMD compliance including establishment of a compliant portfolio, risk management and overall oversight of setup to an AIFM.
What is the AIFMD?
The Alternative Investment Fund Managers Directive “AIFMD” is a European directive, which came into force on July 22, 2013. It prescribes rules for the authorisation, operating conditions and transparency obligations to be applied to alternative investment fund managers (“AIFMs”) and for the marketing of alternative investment funds (“AIFs”) to professional investors throughout the EU. The AIFMD concerns EU and Offshore funds by setting the standards for marketing, raising private capital, remuneration policies, risk monitoring and reporting, and overall accountability.
The benefits of third party AIFM services for the initiator of the AIF:
- Raising Capital - One of the major advantages is that unlike the UCITS regime, the European passport does not attach to the AIF itself, it is a passport granted to the AIFM, and hence the promoter can access our single cross-border marketing passport for an efficient route to distribution within European Union. We are responsible to complete the application per target country and once approved, EU regulators are notified and distribution is permitted to commence.
- Time and cost efficient for Fund Managers – Satisfying substance requirements means satisfying the operating and staffing requirements of not just local laws but also AIFMD laws, creating high fixed costs before you have started earning an income. By utilising our third-party services, you are able to have a streamlined operation allowing you to focus on your core of raising money and investment strategy.
- Cost efficiency for Fund Initiators– Ensuring that you have the right practices in place can be very costly when considering the complexity and implementation of practices as per the AIFMD. Our expert team can assist with fund submission including drafting the offering document, agreements and oversight with necessary third party service providers, lodging with regulator and the ongoing portfolio and risk management required.
- Expertise – Oneworld Plus Management’s specialist team are able to handle all day-to-day operations of your fund and ensure compliance with AIFMD, whilst you continue to operate your fund as an Investment Advisor or Delegated Investment Manager (depending on your level of regulation) under the full benefits of our AIFM license.
- Speed to market - AIFMs provide an established platform with the requisite legal documentation and service providers in place to enable the efficient set-up and launch of a fund.
Oneworld Plus Management is a dedicated third party Alternative Investment Fund Manager (AIFM) based in Cyprus, providing a springboard for comprehensive third-party services to fund initiators, promoters and investment managers.
Our services combined with fund administration and depositary capabilities are able to provide you a seamless solution to add true value to your AIF offering and realise your investment strategies.
- Minimising risk and liability – We implement a risk management system appropriate for identifying, measuring, managing and monitoring all risks relevant to the investment strategy, including market risks and risks of day-to-day operations. We take the liability for this role, ensuring that your AIF is managed in accordance with the fund offering documents and applicable rules and regulations.
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