The client, their challenge
Our client is an established, UK-based manager that wished to set up a new business division for the launch of a new strategy.
Whilst the firm focused on the build-out of its new team, the founders decided to appoint an institutional-quality regulatory host to take ownership of all regulatory and compliance matters pertaining to the new business unit (per FCA Rules), as well as availing of the speed-to-market benefits of becoming an Appointed Representative (AR).
Once they were ready to launch their first private equity 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 whilst their newly established business unit sought direct FCA authorisation in parallel.
Our solution
The firm first became an AR of Sapia Partners LLP, 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 and deal pipeline for their first fund.
Once commitments were in place to launch the fund, Sapia was also appointed as third-party AIFM. We became responsible for the portfolio management and risk management of the fund and, importantly, managed the investment committee process. In addition, we ensured all regulatory aspects under AIFMD, such as Annex IV reporting and valuations, were taken care of.
The results
The firm successfully launched and closed its first private equity fund within its new business division, achieving the fundraise target. They continue to build out their team and have now achieved direct FCA authorisation. IQ-EQ continues to support this client and their funds with several other services including fund administration and compliance consulting.
