Last Monday, our Managing Director Anabel Mifsud and CEO of Bastion Wealth Ltd was in London attending the With Intelligence – HFM Emerging Manager Forum where she spoke on behalf of FinanceMalta. Many matters were highlighted by Anabel and her fellow panelists as important to be thought through before launching a fund including:
Planning – Managers should have a plan which is sustainable as the fund reaches various milestones in terms of AUM, investors, and objectives. If a manager is planning to launch a fund for a number of close contacts, friends, and family, the structure he/she needs is different from a manager who is established with larger AUM and institutional investors. One has to keep in mind that fund structures can be redomiciled and converted to more regulated ones. Service providers can also be adapted depending on the stage the fund is in.
Choice of service providers – Bigger players do not necessarily mean you will get the kind of service you need as an emerging manager. Likewise higher fees do not always result in better service. As a start-up, you should look for service providers that are willing to grow with you, available to guide you, and can support areas that you cannot cover such as compliance and AML.
Regulatory platforms – Start-ups should go through options including platforms. Whilst platforms offer various advantages including having service providers in place with negotiated fees and quicker time to market amongst others, not all offer the same flexibility. This might make them more of a short-term solution at times.
Fund jurisdiction – The jurisdiction chosen for the fund will determine the time to market, potential investors, the flexibility of structure, availability, and quality of service providers.
The Forum was attended by more than 150 delegates and covered other relevant subjects such as raising capital, balancing outsourcing options, managing ESG expectations, family office perspectives of the emerging manager, and moving from emerging to established manager amongst other topics.
Anabel has extensive experience in guiding managers prior and during the launch process. Anabel is also the Chairperson of Malta Asset Servicing Association and a Board member of EFAMA Get in touch – queries@fexservfunds.com
