The Requirement and Solution
The approach was made as the client was not regulated as an asset manager themselves.
The fund was established as a British Virgin Islands Professional Fund, which limits the number of investors to less than 50 and prohibits a public offer of shares.
These characteristics allow the establishment of an Isle of Man company that acts as manager to the fund, with the responsibility for all investment decisions, but which is exempt from the licensing requirements under local regulations.
The Group’s fund administration team has established the fund enabling it to accept subscriptions from several seed investors and establish a successful track record; as the fund grows and builds on this success, the manager will become regulated. The structuring of the fund and the establishment of the manager provided a bespoke, cost effective solution for the client.