Whether you are an EU or a non-EU alternative investment fund manager (AIFM) of alternative investment funds (AIFs) distributed to EU professional investors, selecting your gateway to Europe is an important decision. You could be considering setting up your own AIF, Management Company or using national private placement regimes. If you are looking for a quicker, more cost effective and compliant route to market then a well-respected third-party AIF Management Company enables a fund to benefit from the EU marketing passport for cross-border distribution in Europe.
As a third party AIF Management Company, we provide a range of AIFMD-related risk and regulatory compliance solutions to European, US and Asian based investment managers. IQ-EQ has the specialist expertise and resources to support you develop your business in Europe whilst meeting the requirements of AIFMD through our integrated and independent third-party AIF Management services.
Benefits of a third party AIF Management Company
The activities of an AIF Management Company (AIF ManCos) include providing the portfolio management, risk management and oversight functions required under AIFMD regulation. The benefits of outsourcing these responsibilities to a well-respected third party include;
- AIF ManCos set up in one domicile can be used by managers in another European domicile.
- The complexity and intricacies of operating an AIF management company are outsourced to respected third party, ensuring your risk and oversight functions are compliant, allowing you to focus on your core activities.
- ManCo platforms provide access to suitably qualified people as stipulated under AIFMD rules with the relevant technical expertise to provide the necessary oversight function.
- Portfolio management or risk management may be delegated but not both. Third party AIF ManCos have the technical expertise to perform risk management in the jurisdiction where the fund is domiciled if you do not have this in-house.
- Allocating a third party ManCo from fund launch allows for knowledge sharing and understanding of the main regulatory and operational risks should you decide to set up your own ManCo in the future.
IQ-EQ AIF MANCO
IQ-EQ AIF MANCO provides a range of AIFMD regulatory compliant services for (EU and Non-EU) alternative investment fund managers in the areas of risk management, structuring, compliance and external valuation services from the leading European fund centres in Luxembourg, Paris and London.
Our alternative investment fund management services include;
Valuation of assets
The AIFM is required to ensure that for each AIF under management, appropriate and consistent procedures are in place to have an independent valuation of the assets. Whether the valuation function is performed by either the AIFM, the investment adviser or by an external valuator, under AIFMD the AIFM remains liable. Our services include;
- Defining the AIF’s valuation policy in collaboration with the investment adviser.
- Carrying out asset valuations for real estate, infrastructure, private equity and debt AIF’s.
- Monitoring the external valuator (if applicable).
The AIFM must ensure that the activity of risk management is functionally and hierarchically separate from its operations, including portfolio management. It is required to have risk management systems to identify, measure, manage and monitor all risks for each AIF. Our services include;
- Defining the AIF’s risk management infrastructure.
- Setting risk profile and risk limits.
- Ongoing risk monitoring and escalation.
- Mandatory declarations to the relevant tax office.
There are specific requirements where the AIFM intends to delegate its portfolio management or risk management functions. We offer the following support;
- Monitor the delegated portfolio manager.
- Provide a pre-trade review of investment proposals by the investment portfolio adviser.
- Organise investment committee meetings.
All AIFMs have to report data and information to their regulators with reporting scope of both AIFM and AIF level;
- Produce regulatory AIF and AIFM Annex IV reporting.
- File the Annex IV reporting to the relevant European regulator.
We also offer additional AIFM reporting services for AIFs and Non-EU managers marketing funds in Europe.
AIF Depositary Services
An AIFM that is fully authorised under the Directive is required to appoint a single independent depositary in respect of each AIF it manages. We provide independent AIF Depositary Services from the key European fund centres of Luxembourg, the Netherlands and the UK.