This article talks about the benefits of launching a hedge fund via a regulated platform, as opposed to creating a stand-alone fund.
At CV5 Capital, we constantly work with fund managers to launch a Cayman Islands hedge fund as the Cayman Islands remains the leading domicile for hedge funds in the world.
Over the last few years, we have witnessed an increasing focus by all jurisdictions on tax transparency, disclosure, compliance, governance and regulatory reform. This has added a layer of additional cost and administration to those managing funds and where the manager is not based in the jurisdiction, it can often be difficult to keep abreast of ongoing developments that will impact their fund.
As a result, we have seen fund managers take longer than usual working through the process, understanding the regulatory ramifications, the filing deadlines, the most appropriate service providers for their proposed fund and this invariably adds both legal expenditure but also extended time to launch. Both of which can result in a missed market opportunity and/or changing investor appetite in the proposed fund offering.
It is for these reasons, that we have seen managers more inclined to outsource the heavy lifting of structuring, operational, compliance, governance, legal, administration to a professional firm based in the region of the fund itself, such as CV5 Capital. It is a trend that we have witnessed for many years, by even the largest funds in Europe when it comes to UCITS funds and the UK also for example. No matter how large the AUM of the fund might be, the more time spent by fund managers dealing with the operational side of the business results in less time spent managing the fund portfolio, monitoring the risk and raising capital to grow the fund.
How Does CV5 Capital work with managers?
We provide a hedge fund platform and other fund solutions in the Cayman Islands solely focused on Cayman funds. We provide a complete solution for launching a fund via our platform with best-in-class service providers and ongoing support with your fund or range of funds.
In addition, our platforms provide cost efficiencies and avoids the significant upfront legal cost attributed to launching a stand-alone fund. This is beneficial to emerging managers but even much larger asset managers prefer the operational and regulatory efficiencies of launching funds or target client portfolios via the platform due to its speed and efficiency. Additional funds can also be added as clients demand with different strategies.
Our goal is to provide continued professional support to managers on the platform from launch day and support their capital raising efforts also.
For further information, feel free to contact us: info@cv5capital.io