FundRock Guernsey can act as offshore AIFM to either a UK or Guernsey AIF (a stand alone or feeder vehicle) which can in turn be administered by Apex fund services.
We will delegate the portfolio management to the advisor, while retaining general oversight and the risk advisory function. The AIFM remains outside of the EEA, taking advantage of the National Private Placement Regime and therefore removes the need to comply with much of the AIFMD requirements. Private placement into the EEA does have some reporting requirements, however these exclude certain AIFMD requirements such as the capital requirements and remuneration restrictions for the investment advisor. Importantly the remuneration disclosures only have to be provided on the AIFM (i.e. FundRock).
Other benefits of private placement are reduced cost and time to establish the marketing permission. We have considerable experience marketing via the National Private Placement Regimes, having already registered with a number of EU jurisdictions including: UK, Ireland, Luxembourg, Germany, Denmark and Sweden.
Comparing the requirements of using private placement/FundRock versus the full AIFMD compliant passport are as follows:
Advantages of using FundRock as AIFM
- Guernsey is an attractive jurisdiction for global investors
- Compliance with all of the regulations/notification obligations in the various EEA countries and associated AIFMD obligations are the responsibility of FundRock and not the investment advisor
- Advisor does not have to disclose remuneration, disclosure is at ManCo level
- Using the FundRock/Apex solution minimises the number of parties involved and creates a more streamlined structure
- Reduction in overall costs due to economies of scale
- FundRock provides all Management substance, i.e. office, staff, systems
- FundRock has a track record in private placement and therefore can provide vital experience when accessing EU capital, saving time and cost for the advisor
- FundRock fulfils the capital requirement obligations introduced by AIFMD, not the advisor
Private Placement Solution
With the Private Placement Solution we:
- Act as an offshore AIFM to an EU or non-EU AIF which can be administered by Apex
- Delegate the portfolio management to the advisor, while retaining oversight and the risk advisory function
The AIFM remains outside the EEA, taking advantage of private placement, and with that, reduced reporting obligations and disclosures.
The solution is potentially suitable for non-EEA advisors looking to source professional investor monies, from a number of EEA countries, using the existing private placement regimes within the EEA.
While private placement into the EEA does impose some reporting requirements, these are relatively straightforward and do not include certain the full extent of AIFMD compliant restrictions and disclosures such as capital requirements and remuneration restrictions. In addition the remuneration disclosures only have to be provided for the AIFM (i.e. FundRock) and not the advisor, resulting in significant overall time and cost savings.