Fund Types
In the EU (including the UK) there are two main fund structures:
- UCITS — Undertakings for Collective Investment in Transferable Securities. Targeted at retail investors with relatively high liquidity; typically open-ended. Invests in equities, bonds and other transferable securities. UCITS funds benefit from the EU passport and may be marketed across the EU.
- Alternative Investment Funds (AIF) — Targeted at professional/experienced investors. Includes Real Estate Investment Funds, Private Equity (PE) Funds, Hedge Funds, AIF Funds of Funds, Commodity Funds, Infrastructure Funds and Debt Funds outside UCITS scope. AIFMD-compliant funds also benefit from the EU passport for marketing to professional investors.
Key Factors When Setting Up a Fund
- Target investors and fund size
- Investment strategy, asset class and domicile
- Distribution strategy
- Setup and ongoing maintenance costs
- Choice of fund type; single fund vs. umbrella structure
- Potential tax advantages
- Fund service provider ecosystem
Required Service Providers & Costs
- Local Directors — with relevant experience; fee varies by jurisdiction
- Authorised Fund Manager (AIFM/Manco) — typically 0.3%–1% of NAV depending on strategy and AUM
- Depositary — typically 0.05%–0.10% of NAV; minimum annual fee may apply
- Fund Administrator — typically 0.10%–0.30% of NAV
- Auditor — based on fund size and complexity
- Legal Counsel — as required during fund operations
Our Services
- Advise on the most suitable fund structure based on your business model, investment size and asset class
- Register the fund vehicle locally (private limited company, trust, OEIC, etc.)
- Build a professional management team including licensed persons, compliance officers and directors
- Assist legal counsel in drafting prospectus, subscription documents, sub-fund supplements, business plan and financial projections
- Introduce regulated financial service providers and review service agreements on your behalf
- Submit the fund authorisation application to the relevant regulator
- Respond to regulator queries and attend interviews during the review period
Regulators We Work With
- UK Financial Conduct Authority (FCA)
- Central Bank of Ireland
- Bank of Lithuania
- Banco de Portugal