{"id":1103,"date":"2025-10-22T08:00:00","date_gmt":"2025-10-22T08:00:00","guid":{"rendered":"https:\/\/iqeq.com\/ie\/?p=1103"},"modified":"2025-10-24T09:08:03","modified_gmt":"2025-10-24T09:08:03","slug":"third-party-aifm-vs-owning-an-aifm-what-to-consider","status":"publish","type":"post","link":"https:\/\/iqeq.com\/ie\/insights\/third-party-aifm-vs-owning-an-aifm-what-to-consider\/","title":{"rendered":"Third-party AIFM vs owning an AIFM: What to consider"},"content":{"rendered":"
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By F\u00e8my Mouftaou, Head of Fund Strategy, Continental Europe and Business Development, Benelux<\/em><\/p>\n

A key question for non-EU managers preparing to market a new fund in the region is whether to rent a third-party\u00a0alternative investment fund manager (AIFM)<\/a> or establish a local AIFM.<\/strong><\/p>\n

Both approaches provide access to the Alternative Investment Fund Managers Directive (AIFMD) framework, but they differ significantly in cost, speed, control and regulatory exposure.<\/p>\n

Owning your own AIFM<\/h2>\n

This approach offers more independence and control over the fund management and distribution processes. A management firm would have the ability to build long-term infrastructure and reputation, as well as have flexibility around product selection and strategy. The downside is a longer go-to-market timeline, additional compliance and hiring burdens as well as potentially demanding regulatory inspections and oversight.<\/p>\n

Third-party AIFM<\/h2>\n

This second option provides for more flexibility and cost control, especially when launching a product in the EU for the first time. A third-party AIFM is an external, fully-licensed management company that delegates portfolio management back to the fund sponsor while retaining regulatory responsibility for compliance, risk management, reporting and distribution under AIFMD. It is a well-established model, especially in EU member states Ireland and Luxembourg, where many funds are domiciled.<\/p>\n

Key considerations when choosing \u00a0a third-party AIFM to raise capital<\/h2>\n

For firms that opt for the third-party route, getting this process right is integral to the success of a fund launch. Here are the key questions to consider:<\/p>\n