By Donal Bannon, Director, Ireland (and Designated Person for Investment Management)
If you’re looking to raise capital in Europe, setting up an EU-compliant fund structure is a critical first step. But navigating the regulatory landscape can be complex without a local presence. That’s where management companies (ManCos) come in. In this article, we’ll explain how and why Irish ManCos are such an effective gateway to Europe.
What does a European fund structure look like?
Within the EU, there are two main fund structures to consider:
- UCITS (Undertakings for Collective Investments in Transferable Securities): Established regulation and widely recognised, these funds are suitable for retail and institutional investors, benefitting from broad distribution rights. Management companies acting to UCITS are licenced as authorised UCITS Management Companies
- AIFs (Alternative Investment Funds): Often used for private equity, private credit, real estate, infrastructure, and other private asset strategies. AIFs are typically marketed to professional investors. Management companies acting to AIFs are licenced as authorised Alternative Investment Fund Managers (AIFMs)
Both structures can hold a wide range of asset classes—from equities and bonds to private credit, property and infrastructure—depending on the fund type and investor base. To operate with compliance within the EU, these structures must appoint several regulated parties, including a ManCo.
What is a ManCo—and why do global managers need one?
A ManCo is a regulated firm appointed to oversee the key management functions of an investment fund, ensuring compliance, managing risks, and handling fund governance. It plays a vital role in making sure funds operate smoothly within the UCITS or AIF regulatory frameworks. ManCos typically oversee outsourced services, including fund accounting, reporting and risk management, ensuring investors’ interests are protected.
ManCos can be internal (within the sponsor group) or third-party (independent providers). Many investment managers or distributors opt for a third-party ManCo to simplify their entry into Europe and keep their focus on what they do best: managing portfolios or raising capital.
Without an EU-regulated ManCo, non-European firms could find it difficult to market their funds to EU investors under the passporting regime.
By appointing an EU-based ManCo, you can:
- Launch and manage a compliant EU fund
- Distribute across EU member states
- Navigate the EU regulatory environment with professional support
- Maintain control over investment strategy and distribution through delegation
Ireland’s governance advantage: CP86
Ireland’s Fund Management Company Guidance (CP86) lays out a clear and structured framework for fund oversight. Every Irish ManCo must oversee six core functions, each managed by a designated person:
- Investment management
- Fund risk management
- Operational risk management
- Regulatory compliance
- Capital and financial management
- Distribution
For fund managers, this structure provides a predictable and well-understood regulatory environment that supports complexity at scale. Ireland’s approach is known for being practical, responsive and rooted in a strong service culture, which is especially attractive to firms entering from outside Europe.
Delegation without losing control
Appointing a third-party ManCo doesn’t mean giving up control.
ManCos can delegate key functions—including investment management, distribution and fund administration—back to you or your trusted partners. This means you can retain your fund’s identity, strategy and investor relationships while the ManCo focuses on the fund’s governance and compliance obligations.
Why choose Ireland?
Ireland is one of the world’s leading fund domiciles, and for good reason:
- Service quality: Ireland offers a high standard of client service across fund administrators, depositories and regulators—something global managers often cite as a point of differentiation
- Cost efficiency: While costs vary by structure, Ireland is typically among the most competitive of the world’s leading jurisdictions
- English language and common law: Ireland’s legal system and business culture are familiar and accessible to U.S. and UK-based managers
- Cross-border flexibility: An AIFM or UCITS Management Company can act as the ManCo not only for Irish funds, but also for funds domiciled in other fund jurisdictions
Ireland combines robust governance with operational flexibility, making it an ideal jurisdiction for firms entering the European market.
How IQ-EQ can help
Unlike many third-party ManCos, IQ-EQ Ireland is licensed and equipped to provide full portfolio management in-house. That means we can act as your investment manager (if needed), with no added intermediaries.
We support a wide range of asset classes, including private credit, private equity, real estate and infrastructure. For asset managers, we also provide complementary services such as Money Laundering Reporting Officer (MLRO), loan administration, company secretarial and broader corporate support, making us a strong partner for both institutional sponsors and emerging managers alike.
Appointing an Ireland-based ManCo delivers a flexible, cost-effective and compliant pathway to European investors, without sacrificing control or overextending internal resources. Whether you’re looking to delegate key functions or fully outsource your fund governance, IQ-EQ can help.
