One of our clients setting up a new investment strategy.
An asset manager would like to develop a investment strategy.
Its investor base (HNWIs, family offices and pension funds) have already shown their interest in having an exposure to that new investment strategy.
Our client incorporates a SARL company with a capital of EUR 12.000. This Sarl will become the General Partner of the RAIF. The General Partner is not regulated and retain the control (via management shares) in the RAIF.
The management is untrusted to an AIFM manager selected for the RAIF.
A Depositary bank and an auditor are appointed.
The AIFM appoints our client, the Asset Manager, to become the investment adviser to the RAIF.
The RAIF can be setup in several segregated compartment where the investment strategy will differ depending on the leverage and volatility used by the manager.
The RAIF establised as a Sicav, which has a variable capital, issues shares to the new investors in one of the compartment.
The management fees and performance fees on the assets management of the Sicav are paid to the AIFM.
Part of these fees are payable to the Asset Manager, for its role as Investment Adviser to the RAIF.
Once a month, a NAV is calculated. Subscription and Redemption can happen on a monthly basis.
Such a structure can be used for any kind of projects related to alternative assets (shares, funds, credits, funds of funds, hedge funds, currencies, futures, derivatives, commodities, …)
Case Study 2
One of our clients in real estate construction
Our client plans to develop a real estate project implying important capital investments. Many of its contacts, who are instutional clients, wealthy individuals, or family offices, would like to subscribe in a real estate vehicle managed by our client. His expertise makes him enough qualified to carry out this project with success.
A Special Limited Partnership (“SLP”) is created jointly by his company becoming the General Partner and the first new shareholder (Limited Partner). At the same time its company becomes the adviser of the Reserved alternative Investment Fund which is set up as a Special Limited Partnership. Units are issued by the SLP to the several investors (LPs).
A NAV is calculated once a year based on the status of the real estate project. An alternative fund manager (AIFM) is appointed to manage the SLP and follow all the obligations included in the AIFM directive. A risk spreading rule is applicable. This means that the SLP should invest no more than 30% of its assets into one same project.
Such a structure can be used to all projects related to alternative assets, like real estate funds, private equity, venture capital, vulture fund, financial holding, …
Finally, the SLP can create different compartments to be invested in other type of assets in the future.