Types of Fund & Dixcart Services Available
Different types of fund are appropriate in different circumstances – choose between: Private Investment Funds, Venture Capital Funds, and European Funds.
Types of Fund
Different jurisdictions have their specific fund legislation and choice of fund structures. The optimum option will depend on the investor’s and the promoter’s specific circumstances.
The Dixcart office in Guernsey is excited by the opportunities that the updated Guernsey Private Investment Funds Rules offer, while Exempt Funds, available in the Isle of Man continue to be a popular choice. The jurisdiction of Malta offers the choice of collective investment schemes, operating freely throughout the EU, on the basis of a single authorisation from one member state. Venture capital funds are popular in Portugal, and in the right circumstances can also lead to receipt of a Golden Visa.
Private Investment Funds
The Guernsey office provides fund administration services to all Closed Investment Schemes but with the particular focus towards the Private Investment Funds (PIFs) noting that no Private Placing Memorandum or Prospectus is required to be issued under the PIF regime.
With the Guernsey Financial Services Commission (GFSC) recent update to the Private Investment Fund Rules, there are now three alternate PIF routes, as from 22 April 2021:
- Route 1 – the POI Licensed Manager PIF is the original PIF model whose criteria include: fewer than 50 investors, limits on new investors and those leaving the fund in a 12 month period, and, must have a Guernsey resident POI Licensed Manager appointed.
- Route 2 – the Qualifying Private Investor (QPI) PIF is a new route which does not require a GFSC licensed Manager and is aimed at investors who meet the criteria of being a QPI (Qualifying Private Investor), able to evaluate the risks and bear the consequences of the investment.
- Route 3 – the Family Relationship PIF is the second new route that does not require a GFSC Licensed Manager. This route allows for the creation of a bespoke private wealth structure as a fund and requires a family relationship between investors. This route is only open to investors who either share a family relationship or who are an ‘eligible employee’ of the family and meet the criteria of being a QPI.
All Isle of Man funds, including Exempt Funds, must conform to the meanings defined within the Collective Investment Scheme Act 2008 (CISA 2008), and regulated under the Financial Services Act 2008.
Under Schedule 3 of CISA, an Exempt Fund must meet the following criteria:
- The Exempt Fund to have no more than 49 participants; and
- The fund is not to be publicly promoted; and
- The scheme must be (a) a Unit Trust governed by laws of the Isle of Man, (b) an Open Ended Investment Company (OEIC) formed or incorporated under the Isle of Man Companies Acts 1931-2004 or Companies Act 2006, or (c) a Limited Partnership that complies with Part II of the Partnership Act 1909, or (d) such other description of a scheme as is prescribed.
Malta benefits from a series of European Union Directives which allow collective investment schemes to operate freely throughout the EU, on the basis of a single authorisation from one member state.
Characteristics of these EU regulated funds include:
- A framework for cross-border mergers between all types of EU regulated funds, allowed and recognised by each member state.
- Cross-border master-feeder structures.
- Management company passport, which allows an EU regulated fund established in one EU member state to be managed by a management company in another member state.
Venture Capital Funds
Venture capital funds are proving very popular in Portugal. STAG Fund Management work closely with Dixcart. STAG is a venture capital fund manager, specialising in managing investments generally, but not exclusively in Portuguese companies.
Funds can present a broader range of investment opportunities and help meet the increasing obligations for regulation, transparency and accountability.
Dixcart fund services can be accessed through the Dixcart offices in Guernsey, the Isle of Man, Malta and Portugal.