Many traders and fund managers are curious about the fund formation process. The objective of this blog post is to explain the exact steps that can be executed in as little as six weeks.
Now – it’s important to recognise that setting up your own investment fund is a complex process. But that’s no reason for a fund administrator to not move efficiently.
Here’s how the process works.
WEEK ONE: Week one is simple. Our team will ask you to complete a ‘Fund Questionnaire’ and provide due diligence documentation.
WEEK TWO: In week two, we’ll discuss fund features with you – such as subscriptions, redemption terms and performance fees. We’ll also draft the fund prospectus and management agreement, along with bank and broker account applications.
WEEK THREE: We finalise the fund prospectus in week three. In addition we appoint an auditor and prepare a CIMA application.
WEEK FOUR: In week four, we liaise with banks and brokers to complete all account openings.
WEEK FIVE: During week five, our team submits the CIMA application – and completes the overall fund formation process.
WEEK SIX: In week six, it’s time to launch your fund and execute your strategy.
If you’re considering your own investment fund in 2023, it might be an idea for us to have a discussion. I can talk you through this process in more detail – and answer any questions you might have.
If this is of interest, just email me and we can arrange a call on Skype.