The asset management industry is faced with volatile markets whilst the pool of capital to manage is growing.
At the same time, it navigates through significant disruption, changes and pressures from all sides.
A Japanese Asset Manager was seeking a European jurisdiction to establish a management company and a regulated alternative investment fund (AIF) to accommodate different envisaged strategies, including investing in Real Estate in Russia and deploying global macro-strategy. Thus, investment opportunities identified in the EMEA region fit the risk profile of his existing clients in scope. He aims at expanding his assets under management while raising capital from Europe.
The management company structure which was chosen in cooperation with KPMG in Cyprus and which complies fully with the local legislation transposing the Alternative Investment Fund Manager Directive (AIFMD) 2011/61/EU (good long-term future is seen for the AIFMD brand globally), allows the client to spend essential time outside Cyprus, as he can rely on the local team (senior employees and service providers to whom certain functions have been delegated) for the day to day operations and administration. Furthermore, via the operation of the AIF he is enabled to keep segregated compartments within the same umbrella structure; this is essential in order to cater for different strategies.
AIFMD-compliant structures are attractive to non-Europeans, such as Asian institutional and professional investors. The Asset Manager may avail of the possibility to set up new fund structures being promoted in various recognised jurisdictions such as Cyprus. Such structures are indirectly regulated through the competent national authority of the AIFM. In Cyprus, such structure is the Registered Alternative Investment Fund (RAIF). The RAIF features a quick time to market while the Japanese Asset Manager continues on his investing journey. Further, the AIFMD quality seal ensures a high level of investor protection (appointment of a Depositary bank, regulation of the AIFM, audit, etc.).
For information on how the ‘one stop’ fund service offering of KPMG in Cyprus can help your business, visit our Investment Funds page here to contact us.
Download our Fund Services brochure for more detailed information on the services offered.
To learn more about this project, please contact Marie-Helene Angelides.