THIRD PARTY AIFM SERVICES
Dedicated AIFM providing comprehensive services for the sponsors of private equity, real estate, infrastructure, funds of funds as well as debt funds within these asset classes
Royalton Partners with 25 years portfolio management experience in private equity provides:
- Portfolio management,
- Risk management
and other services required by the AIFMD:
- EU marketing passport notifications
- Compliance/reporting
- Valuations
Allows fund sponsors to focus on core asset management activities
Royalton Partners has experience of working with and is able to recommend experienced depositaries, administrators, auditors and banks to ensure full compliance, seamless co-operation and minimum involvement of the fund sponsor.
Royalton’s team has also long standing experience working with service providers selected by the client.
ROYALTON THIRD PARTY AIFM PROVIDES
UNRESTRICTED MARKETING
Funds managed by Royalton Partners benefit from the EU/EEA marketing passport
- Unrestricted marketing across the EU/EEA
- No need to apply for authorisation under national private placement regimes
- Avoid risks of reverse solicitation
- Full regulatory compliance
PORTFOLIO MANAGEMENT
Royalton Partners can accommodate any third party AIFM co-operation model
- Co-investment
- Advisory
- Delegation
Royalton makes investment decisions for the Luxembourg fund exclusively on the recommendation of the Principal Fund or the Investment Advisor in congruence with fund documentation and AIFMD, specifically:
- Approves investments
- Fulfills all functions related to risk management requirements
- Co-appoints, with the General Partner of the fund, an external valuer
- Reports to the CSSF in compliance with the requirements of the AIFMD
- Provides regulatory capital
Upon request of the Fund sponsor portfolio management may be delegated. In such case the delegate must be authorised for management of alternative investment funds.
FLEXIBLE FUND STRUCTURING
Royalton can act as an external AIFM to parallel or single Luxembourg AIFs, structured as RAIF, SIF, SICAR, SCSp or any other fund structure required by the Client
Typically Royalton manages a Luxembourg fund, which is structured as:
- Parallel, investing pro rata to the Sponsor’s non-European fund, or
- Single Luxembourg fund
Luxembourg provides comprehensive toolbox of regulated and unregulated fund structures, which can be adapted to the Sponsor’s needs.
Luxembourg funds can be structured in multiple ways :
- With or without legal personality
- As tax transparent or as taxable funds, benefitting from double taxation treaties
- As regulated or unregulated
- With or without prior approval of the regulator
As single-strategy funds or platforms with compartments for managing multiple strategies or fund vintages
For better understanding of our AIFM services, we have designed an example, based on real-life situations.
EXAMPLE OF FUND STRUCTURE
PARALLEL FUND
- Appropriate when the fund sponsor is managing or launching an existing non-EU fund
- Luxembourg based fund created for EU LPs, co-invests with a non-EU fund
- Fund sponsor always controls the EU General Partner and the bank accounts of the fund
