Paving the way to Europe

Regulation has increased the competitiveness of onshore European investment funds, making them more attractive for asset managers and investors. At the same time, a number of measures have been put in place to protect investors’ interests. These include the requirement to provide evidence that funds have substance in terms of their structure, systems and the number of people managing them on a day-to-day basis. FundRock Management Company S.A. helps asset managers meet these objectives in order to make their investment strategies available to investors across Europe and the globe in a safe and compliant way. Choosing a European onshore location as the domicile for investment funds is becoming increasingly popular. Changes to regulation, the introduction of new fund vehicles and an increasingly negative public perception of offshore solutions are eroding the advantages previously associated with offshore domiciles, such as speed to market and greater asset class flexibility. The additional advantage of onshore structures is that they benefit from the EU passport and provide access to a wider range of institutional investors. For many years, FundRock has been synonymous with profound expertise in fund services. The firm offers fund governance solutions and related services, with market-leading technology and an exceptional depth of expertise. Risk management, oversight, compliance and knowledge characterize FundRock’s management company solutions. “We have traditionally focused on supporting UCITS funds and liquid alternative investment funds, but this is soon to expand,” points out Executive Director Gudrun Göbel. “We are proud of our robust internal infrastructure,strong substance and client-centric approach, and of our ability to innovate to meet our client and regulatory expectations.” FundRock, formerly known as RBS (Luxembourg) S.A. (RBSL), was part of the Royal Bank of Scotland’s 80-year-old Trustee and Depository Services group. “In 2002, UCITS III came into effect, leading to local substance requirements for funds in Luxembourg, and in 2004, using the experience of the Trustee business, RBS established RBSL as an independent fund management company,” explains Ms. Göbel. “The business quickly grew into the largest independent third-party UCITS management company/AIFM in Luxembourg, managing 33 billion EUR of fee paying assets at its highest point.” On 1 January 2016, RBSL was sold to private equity group Black-Fin Capital Partners and became FundRock Management Company S.A. Today, FundRock is a fully independent company. It has more than 65 employees and continues to grow. “Being backed by a private equity company enables us to focus on growth,” says Ms. Göbel. “Now, we are able to explore new product lines and services. There are many new initiatives including the establishment of an illiquid alternative business focusing on private equity, real estate and private debt funds, as well as the introduction of tools to make regulatory reporting easier for our clients. At the same time, we continue to strategically assess global growth in the fund management industry and seek to align our local presence with this, to ensure that we are available to our global client base in their local market.”