Family Office Funds
Family Offices throughout the UK and Europe are actively establishing their own investment funds to make acquisitions into target companies / sectors, either one hundred percentage, or as co-investors. As the family office will be conducting its activity within Europe, the fund would require AIFM hosting, under the AIFMD regime.
An increasing number of family offices are ‘going direct’, by creating their own investment vehicles to make investments into private companies. This not only creates personable relationship, but also allows family offices to benefit from the upside.
Historically, family office funds have relied on fund managers to carry out due diligence on potential investments – however, there now appears to be a clear trend in direct approaches.
Why Launch a Family Office Fund?
- Greater Control & Faster Decision Making
- Increased value, negotiation power and in turn higher returns
- Reduced fees and expenses
- Leverage off other HNWs and Family Offices to invest in your fund as limited partners
- Social Impact Investing (Philanthropy and sustainable investments)
Family Office Funds - Why XCAP
We are specialist organisation, which allows us to apply our technical knowledge to fund launches, ongoing compliance and AIFM hosting – allowing you to focus on deal origination, execution and creating value within your investment portfolio. It is far more cost effective for family offices to outsource their AIFM hosting and regulatory hosting to specialist firms like XCAP, so that the family office can focus on its core business.
Family Office Funds - How can XCAP help?
The overall purpose of a family office fund, is generally to retain control over the investment made and the reduce fees paid to other fund managers.
By outsourcing the regulatory compliance function of the fund, you will be able to do just that – whilst actively creating value with greater control over your portfolio. We offer a complete platform for Family Office Funds that will allow you to ‘plug and play’ your fund, from structuring, legal documentation, launching, due diligence, regulatory cover, EU passporting and capital raising (where required)
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
- 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
Launching a Family Office Fund
We have helped establish Family Office funds ranging from 15 million GBP, to over 50+ million GBP for HNWs and Family Office clients. As a rule of thumb, we recommend 10 million GBP/EUR/USD to be a minimum when launching a Family Office 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.