European AIFMD Fund Solutions for US & Non-EEA Investment Managers

The European fund management industry is heavily regulated under the AIFMD regime, where all European funds must ensure they are properly advised on the regime and have the appropriate FCA permissions in line with their investment strategy.  The same notion applies for US and non-EEA fund managers seeking to either launch a European investment fund, raise capital or promote an existing fund in Europe. 

As a specialist in US and non-EEA fund management advisory, XCAP Global provide guidance on both fund structuring, hosting and European AIFM solutions to existing and start up fund managers domiciled in the US or non-EEA third countries.    XCAP Global and our partners operate in Europe with an AIFM licence, which enables our partners to assist non-EEA fund managers in operating the fund, either as CF30 of the AIFM, or an FCA Appointed Representative, which allows the fund managers to focus entirely on managing money, deal origination and execution, rather than spending time and resources on ‘non-core’ and administrative functions.  

Our European AIFMD solutions are specifically designed for US and non-EEA managers seeking a gateway into the European make in the most flexible and cost-effective method.  

Whether you are seeking to establish a UK entity, or simply operate as a CF30 Portfolio Manager, XCAP Global and our partners work closely with you in devising a regulatory hosting and AIFM platform based on your business-model and desired budget.  

Other options for non-EEA fund managers looking to promote funds into Europe?

National Private Placement Regime (NPPR) is a mechanism that allows non-EEA fund managers to promote non-EEA Alternative Investment Funds to European investors without the need to be authorised as an AIFM and use the AIFMD passport. However, NPPR is very restrictive in terms of how the promotions take place and the number of investors that can be promoted to, in each European country and will be phased out by 2019/2020 completely – therefore it is often cost effective to engage with a European AIFM to assist with the marketing and promotion of your existing fund throughout all 28 European member states.

 

Location of the Fund Manager Domicile of the Fund Marketed in EU Subject to AIFMD Marketing Options
EU EU Yes AIF - Yes, UCITS - No Passport/NPPR
EU Non-EU Yes Yes Passport/NPPR
Non-EU EU Yes Yes Passport/NPPR
Non-EU Non-EU Yes Yes Passport/NPPR

For example, a Singapore based fund manager seeking to promote its fund in the European market could appoint an EU-based AIFM and become AIFMD compliant in a short period of time in order to quickly promote its fund to attract a broader investor base.  

The AIFM would register the fund with a European regulator and establish passporting throughout the EU member states, create MoU’s and meet respective requirements and complete all regulatory filing on behalf of the fund. The Singapore manager also benefits from the fact that the AIFM will already be known to and have a working relationship with EU regulators. The AIFM can delegate certain functions back to the Singapore manager, whilst fulfilling the regulatory requirements, reporting and compliance with the EU regulator.

For many US and non-EEA fund managers looking for access to the European market, this is typically the most efficient and less costly option available to them.  

 

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