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Customized structuring – delegation model
  • Portfolio management is delegated to the fund sponsor, which must be authorised for management of alternative investment funds by:
    • Any of the EU national financial supervisory authorities, or
    • A competent non-EU financial supervisory authority which has signed a co-operation agreement with the Luxembourg financial supervisory authority, the CSSF (most developed countries and financial centers qualify)
  • Royalton’s engagement:
    • Supervision of the delegate with respect to the AIFMD
    • Fulfills all functions related to risk management requirements
    • Co-appoints, with General Partner of the fund, an external valuer
    • Reports to the CSSF in compliance with the requirements of the AIFMD
    • Provides regulatory capital
  • Parallel co-investment model
    • Appropriate when the fund sponsor has a non-EU fund
    • Luxembourg based fund created for EU LPs, which invests pari passu with a non-EU fund
    • Fund sponsor controls the EU General Partner and the bank accounts of the fund
  • Single fund model
    • Appropriate with the fund sponsor chooses to only have EU fund structure