The client, their challenge
Our client is a property business listed on the London Stock Exchange, with a portfolio of UK properties that are leased to tenants operating in the life sciences sector.
Structured as a real estate investment trust (REIT), this portfolio is required to comply with the Alternative Investment Fund Managers Directive (AIFMD) as implemented into UK legislation. A comprehensive, outsourced AIFM ManCo solution was sought.
Our solution
The client appointed G10 Capital (one of IQ-EQ’s regulated entities) as a third-party AIFM in the UK. As AIFM, G10 is ultimately responsible for the portfolio management and risk management of the REIT under AIFMD.
In this case, the investment adviser to the REIT has also been provided with Appointed Representative services by G10, allowing it to conduct the regulated activities of investment management and marketing without direct FCA authorisation.
Our/G10’s oversight means that all relevant regulatory requirements (including Annex IV reporting) are complied with. This gives investors comfort that all the compliance boxes are ticked.
What’s more, compliance costs are fixed, allowing better budgeting and overall lower costs compared to building and operating the same structures in-house.
Results
The REIT is now listed on the London Stock Exchange in its own right, and all regulatory requirements are taken care of by IQ-EQ, allowing the investment manager to focus on what they do best – sourcing investors and deals.
