Whilst Private Equity as an asset class that as rapidly grown from the financial crisis of 2008-9 into a leading alternative asset class, it is heavily regulated in the UK and Europe. Thus, all private equity funds should ensure they have regulatory cover, ranging from adequate FCA permissions, passporting and regulatory protections.
Any Private Equity firm (EU/non-EEA based) operating in Europe must operate within the AIFMD regime and therefore have a AIFM to ‘host’ the private equity fund.
The Growth of Private Equity in Europe
Since 2009, Private Equity funds globally have exploded in growth and funds under management with over 5 trillion dollars deployed or under management, largely due to the ultra-low interest rate environments globally, ample limited partners (investors) and a huge increase in organisations seeking the expertise of corporate finance advisory and private equity funding/buyouts.
Private Equity Fund Launch - Why XCAP?
Unlike other regulatory hosting platforms and European AIFM platforms, we are specialist in Private Equity fund launches and EU AIFM hosting, thus we specialise in what we know. Rather than be a generalist regulatory hosting platform, we offer bespoke services to Private Equity / Venture Capital funds, complete with integrated solutions such as custodians, offering memorandum, regulatory cover, fund administrators and legal support where required, offering a true ‘plug and play’ solution.
We work with Vantage Point Capital who are directly authorised and a Small Scope AIFM - regulated by the Financial Conduct Authority in the UK. By working with XCAP and Vantage Point Capital will allow you to focus on deal origination, execution and value creation – rather than spending time and resources on non-core activities.
Being a true specialist, allows us to add genuine value to our Private Equity clients, from a corporate finance advisory and capital raising point of view, to offering assistance in managing risk and compliance. Our Private Equity funds solutions are far more cost effective for firms, instead of seeking direct FCA approval and establishing an AIFM – as we have the expertise, infrastructure and specialist technical knowledge.
XCAP and Vantage Point Capital (our regulated investment manager and European AIFM) are members of the British Venture Capital Association (BVCA) and UK Business Angels Association.
Private Equity Funds - How can XCAP help?
Whether you are a seasoned professional in Private Equity, or looking to launch your first fund – we offer a complete platform for Private Equity funds that will allow you to ‘plug and play’ your fund, from structuring, legal documentation, launching, regulatory cover and capital raising.
Our service include, but not limited to;
- Fund Structuring & Set Up
- Fund Offering Memorandums
- Legal Counsel/Support on Taxation, Investment Management Agreements and corporate structures for the General Partner (GP).
- Integrated Fund Administration & Auditing
- FCA Regulatory Hosting (FCA Appointed Representative)
- European AIFM/ManCo Hosting for the Fund
- European Passporting to all 29 EEA States
- Corporate Finance & Capital Raising
- Risk Management / External Risk Committee
Private Equity Fund Launch
We have helped launch Private Equity funds ranging from 5 million GBP, to over 150+ million GBP for clients ranging from family offices, HNWs and institutional private equity platforms. As a rule of thumb, we recommend 5 million GBP/EUR/USD to be a minimum when launching a private equity fund, in order to cover the operating costs of the fund and general partner.
Some funds launch with less, however this does skew the Total Expense Ratio (TER) of the fund, which is not ideal.