If fewer hedge funds are launching than in prior years, this is partly due to the time taken to start funds, set up management structures, or get onto third party platforms. But various options are marketed as offering a faster time to market.
Offshore international financial centres, including Jersey and Guernsey, say their regulators are swifter in signing off new management companies and funds. Some onshore centres also offer fund structures with potential for ‘fast track’ approval.
For those that already have an AIFMD-compliant management company, unregulated funds can be approved in days or weeks. Luxembourg’s RAIF (Reserve Alternative Investment Fund) and Malta’s NAIF (Notified Alternative Investment Fund) are not authorised, supervised nor regulated by their respective regulators (the CSSF and MFSA), and can avail of AIFMD passporting rights. Ireland has not coined a new fund name nor acronym, but its unregulated limited partnerships, run by AIMFD-compliant mancos, offer the same two key features: as AIFs they can be passported, but are not regulated by the Central Bank of Ireland.