Do you harbour an ambition to run and manage your investment fund? If the answer is yes, it’s important that you consider the following matters carefully:
First of all, you need to decide in which jurisdiction to establish your investment fund. A common mistake first-time fund managers make is to pick a low-cost jurisdiction that doesn’t appeal to investors. Remember – your jurisdiction needs to hold credibility with your investors and institutional partners.
If you’re unsure on where to start, the team at IFINA can discuss the most appropriate jurisdiction for your fund and its investor base.
Fund Structure & Administrator
You also need to think about the structure of your investment fund. The truth is that there are numerous fund structures to choose from. Choosing the best structure depends on the following factors:
- What are the nationalities of the target investors?
- What are the anticipated assets under management (AUM) on day one?
- How many investors are anticipated at launch and after one year?
- What is the fund investment strategy?
Answers to the above will help determine the correct and most suitable fund structure for you. Again, the team at IFINA can help you decide the best structure for your fund.
The choice of Fund Administrator is also critical to your long-term success. Traditional administrators usually charge substantial setup fees, along with high running costs. The service offered by these administrators also tends to be less tailored to an individual fund.
We’re proud to offer our clients a truly bespoke service, catering to their specific operational needs. We’re also an incredibly agile business – which means we can adapt to situations, like COVID-19, where there’s a need to work remotely.
Your fund will need to be independently audited by a recognised auditing firm. Choosing the correct auditing firm can be difficult for first-time fund managers. However, this is a task that IFINA can also help with, as we have long-term relationships with major-tier one audit firms and internationally recognised lower-tier audit firms.
Broker & Bank
Your fund will need to use a broker and banking partner that are reputable to your investor base. Fortunately, IFINA has a network of institutional contacts – which include established brokers and banks – that can be utilised.
Do you need some assistance with these considerations? Just email me back and we can arrange a free Skype consultation.