VFS has experience administering a whole range of fund structures and fund types. This has helped to increase the versatility of our service and given us the confidence to take on more alternative funds. Apart from vanilla funds, we have also administered hedge funds, real estate & private equity funds, fund of funds, pension schemes, commodity/energy funds and even an art fund. Some of these funds have been set up with different legal structures such as Protected Cell Companies (PCC’s), master/feeder structures and limited partnerships.

Gibraltar Funds

A restructuring of the Gibraltar funds regime is currently under way with a view to grow the funds industry and meet the challenges of Brexit. More flexibility will be introduced for existing fund vehicles and a distinction will be created between funds that target the EU and those that do not. For the time being, the most relevant fund vehicles offered in Gibraltar are;

Experienced Investor Funds (EIFs)

EIFs as the name suggests, are exclusively for experienced and high networth investors. These funds, although authorised by the Gibraltar regulator (GFSC), require no pre-launch approval thus greatly reducing their speed to market. Instead, the onus for compliance and governance is placed on the directors, who have to be pre-approved as ‘EIF Directors’ by the regulator. There are no restrictions as to the eligible asset classes for an EIF or diversification requirements and they are tax neutral. EIFs are therefore ideal for managers looking for a flexible and efficient fund vehicle that can be set up quickly but still afford investors appropriate regulatory protection.

Private Fund

The Private Fund vehicle is very useful for small fund start ups especially those that are cost sensitive, since there are few requirements. It is an unregulated vehicle and is not subject to any licensing requirements. Nevertheless, as with most EU fund vehicles, a private fund still needs to be registered as a small AIFM under the AIFM directive. There are no restrictions on the type of investor, but the vehicle can only currently be marketed to an identifiable category of persons such as clients, family or friends whose number is fewer than fifty.

For more information on Gibraltar funds please go to the Gibraltar Funds and Investment Association website; http://www.gfia.gi/pdf/GFIA-Funds- Managers-Second- Edition-booklet.pdf