AIFM Solutions for Hedge Funds
Despite ‘Brexit’, there has been tremendous growth in the European hedge fund arena over the last 10 years – where quantitative easing and continued low interest rates have accelerated the growth of investors and hedge fund managers chasing competitive returns.
Portfolio Managers have raised significant amounts of external capital from Europe and US from investors seeking alternative, market beating strategies. London remains the European hub for hedge fund managers and the regulatory and risk management infrastructure retains its prominence as the ‘gold standard’ of financial regulation.
The renewed interest of 'Long-Short' Hedge Funds have been sparked by a continued low interest environment, COVID-119 market rallies - where family offices, corporates and HNW are actively deploying capital into specific funds (or funds of funds), often with a mixture of;
- Foreign Exchange
- Derivatives (futures, options, CDS)
Given the broad trading strategies and instruments, hedge funds are open ended, liquid funds and correlated to events (E.g. COVID-19 lockdown of March 2020) and statistics/figures based on companies/governments/GDP growth.
The fund is managed by an experienced discretionary fund manager who would form an investment view on whether a financial asset was under-performing/undervalued or overvalued. The trading ultimately happens based on the analysis of the investment manager who would take a leveraged and calculated approached for maximum gain – hence the name ‘Long Short’.
Investors (limited partners) would generally ‘follow’ an investment manager, by way of past performance. Investment managers like Ray Dalio (Bridgewater Associates), Warren Buffet (Berkshire Hathaway) all launched long short hedge funds to build up a loyal investor following.
Thus, Long Short Hedge Funds are very common amongst investment managers and analyst who have historically worked within an organisation, but are now seeking to establish their own investment management organisation.
Hedge Fund Launch - Why Vantage Ventures
Unlike other regulatory hosting platforms and European AIFM hosting solutions, we specialise in structuring, launching and hosting long short hedge funds under the AIFMD regime. Rather than a generalist regulatory hosting platform, we offer bespoke services to hedge funds, complete with integrated solutions such as risk management, prime brokers, custodians, fund administrators and legal support where required.
By being a true specialist, allows us to add genuine value to our hedge fund clients, from a capital raising point of view, to offering assistance in managing risk and compliance.
Our regulated investment manager and European AIFM are Vantage Point Capital, who are directly authorised by the Financial Conduct Authority and as a Small Scope AIFM.
We specialise in working with non-EEA hedge fund managers based in USA, Middle East and Asia, seeking to establish a European base quickly and cost effectively, before they commit resources and capital in becoming directly authorised.
Hedge Funds - How can Vantage Ventures help?
Whether you are a seasoned professional in hedge funds, or looking to launch your first fund – we offer a comprehensive turnkey platform for hedge fund manager that will allow you to ‘Plug and Play’ your fund, from structuring, risk management, fund memorandum, regulatory cover and capital raising. Unlike other hedge fund AIFM solutions, we give you complete control in which service providers your fund would like to engage with;
Our hedge fund AIFM solutions include, but not limited to;
- Competitive and flexible pricing, specifically for Social Impact Funds
- Fund Structuring & Set Up
- Fund Memorandum
- Prime Brokers/Custodians
- Legal Counsel/Support on Taxation, Investment Management Agreements
- Integrated Fund Administration & Auditing
- FCA Regulatory Hosting (FCA Appointed Representative)
- European AIFM/ManCo Hosting for the Fund
- European Passporting
- Capital Raising solutions & Introductions
- Risk Management / External Risk Committee
Launching a Hedge Fund in Europe
The number of hedge funds established in Europe have increased at record levels, with no indication of slowing down. Once the biggest drives is non-EEA capital from US, Middle East and Asia pouring into regulated investment structures which give the investment managers creditability when capital raising.
With demand from investors expected to grow post COVID-19 – the European fund sector has been earmarked to be one of the fastest growing asset classes over the next 10 years in the European Union. Despite ‘Brexit’, the UK continues to drive the most concentration of hedge fund managers regulated under the Financial Conduct Authority.
If you are interested in launching your long short hedge fund or are an analyst / investment manager thinking about flexible working solutions, but want to learn more about costs, please visit our bespoke ‘Xchanging’ platform by clicking here.
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