The client, their challenge
Our client is an emerging, UK-based manager that wished to launch a hedge fund.
Whilst the firm focused on building its business and sourcing potential investors, the founders decided to appoint an institutional-quality regulatory host to take ownership of all the firm’s regulatory and compliance matters (per FCA Rules). Beyond allowing the firm to avail of the speed-to-market benefits of becoming an Appointed Representative (AR), this approach would provide investors with assurance on governance and independence.
Once they were ready to launch their first fund, the firm then needed an alternative investment fund manager (AIFM) under the requirements of the UK AIFM regime. They decided to appoint a specialist third-party firm to provide AIFM services.
Our solution
The firm first became an AR of G10 Capital Limited, an FCA regulated subsidiary of IQ-EQ. Using this route, the client was ready to conduct regulated activities quickly and the founders could focus on fundraising.
Once commitments were in place to launch the fund, G10 was also appointed as third-party AIFM. We became responsible for the portfolio management and risk management of the fund and ensured that all the regulatory aspects under AIFMD, such as Annex IV reporting and valuations, were taken care of.
In addition, the client was able to take advantage of G10’s existing relationships within the hedge fund industry, including brokers, trading counterparties and vital hardware and software providers. This allowed the client to build out institutional-grade infrastructure to support their hedge fund launch.
The results
The firm successfully launched its hedge fund and has since gone on to launch a second fund, with continued support from G10 with both AR and third-party AIFM services. We hope to continue supporting this client as they grow and look to launch additional products in future.
Find out more about our AR regulatory hosting and third-party AIFM services in the UK, or get in touch with our expert team today.
