festivalcros.blogg.se - Venture capital fund structure

The authorization of the AIFM will impact the availability of the AIFMD marketing passport, which is only available to an authorized EU AIFM.Īsset types and investment strategies – A QIAIF can generally invest in any asset type and conduct any investment strategy, including venture capital strategies. Key features of a QIAIF are:Ģ4-hour fast-track authorization process – QIAIFs that have an authorized Alternative Investment Fund Manager (“AIFM”) can generally be authorized within 24 hours of application to the Central Bank.ĪIFM appointment required – An AIFM must be appointed in respect of a QIAIF product, which can be an EU-authorized AIFM, Irish-registered AIFM or a non-EU AIFM. QIAIFs are Irish-regulated AIFMD-compliant structures aimed at sophisticated or institutional investors. Qualified Investor Alternative Investment Fund – regulatory wrapper The following table is a non-exhaustive high-level summary of the main differences between a QIAIF ICAV, a QIAIF ILP and the 1907 LP. Other structures, such as the common contractual fund and unit trusts, are available, but are typically used by asset managers for more bespoke products.

Depending on the authorization of the appointed AIFM, an ILP can typically use the AIFMD marketing passport. In light of recent enhancements to its legislative regime, the modernised ILP is viewed as a game changer which will bring an increasing number of fund promoters to Ireland to establish their venture capital funds. Investment Limited Partnership (ILP) – Regulated – The ILP is a common law partnership of two or more persons having as its principal business the investment of its funds in property of all kinds and consisting of at least one general partner and at least one limited partners.Depending on the authorization of the appointed AIFM, an ICAV can typically use the AIFMD marketing passport. Please see below for further information on the QIAIF product wrapper. ICAVs with a venture capital strategy are required to be regulated by the Central Bank of Ireland as Qualified Investor Alternative Investment Funds (QIAIFs).

Since its introduction in 2015, the ICAV has become the predominant corporate vehicle of choice for structuring regulated venture capital funds. Unlike an investment company, it is not subject to certain pieces of company legislation that are targeted at trading companies.

Irish Collective Asset-Management Vehicle (ICAV) – Regulated – The ICAV is a tailor-made corporate vehicle designed specifically for Irish investment funds.

A 1907 LP may, subject to certain restrictions, avail of the pan‑European marketing passport under the Alternative Investment Fund Managers Directive (AIFMD) provided that a fully authorized Alternative Investment Fund Manager (AIFM) and depositary are appointed. As 1907 LPs are not subject to regulation, they are cost effective to establish and operate. The 1907 LP has been frequently utilised in recent years by Irish and international venture capital groups.

1907 Limited Partnership (1907 LP) – Unregulated – The 1907 LP is a common law limited partnership constituted under the Limited Partnerships Act 1907, as amended.

To assist in identifying the optimal structure for fundraising, here is an overview of typical Irish regulated and unregulated fund vehicles suited to housing venture capital strategies: Ireland has a deep level of expertise in venture capital products, including regulated and unregulated funds, with leading service providers across a range of sectors physically based in Ireland, including fund formation services, asset management, fund administration and transfer agency, legal, audit, tax and compliance services.

With a successful track record in the alternatives space, Ireland is highly regarded by fund promoters and sponsors as an attractive, tax-efficient and innovative jurisdiction in which to domicile their regulated and unregulated venture capital funds. Ireland was the first regulated jurisdiction to provide a regulatory framework specifically for the alternative investment fund industry. Upwards of 40 percent of global alternative investment funds assets are serviced in Ireland. Ireland, a member of the European Union, has been a leading funds domicile for more than 30 years and is the largest alternative investment fund centre in the world. Ireland as a domicile for venture capital funds