Funds issuance 2.0
The investment universe is in motion. In Germany, adaptable special AIFs are being increasingly issued. “It’s an area where we are observing strong demand”, says Daniel Knoblach, General Manager of Super Global GmbH. This is due to the fact that professional initiators and asset managers prioritise fund structures that offer cost and administration advantages. “And in addition, special AIFs enable initiators to react quickly and flexibly to changing markets.”
Alternative investment funds provide access to a significantly wider variety of investments. Issued as special AIFs and thus restricted to professional and semi-professional investors, documentation requirements and, consequently, issuance expenses are substantially reduced. “Special AIFs are highly appreciated particularly by informed investors”, Knoblach points out.
The lowered cost structure is among the strongest arguments, but the speed with which the special AIFs can be introduced to the market also plays a significant role for investors considering these funds. “Given that there is no distribution to private investors, the requirements in prospectuses and documents are entirely tailored to institutional investors”, Knoblach adds. “This makes the issuance process leaner and faster overall.”
Transparency and security are not compromised, though. German special AIFs are subject to strict regulation. “As a BaFin-supervised manager for AIFs, Super Global offers a variety of fund solutions for the German market”, explains Knoblach. “They include liquid trading strategies as well as fund-of-fund concepts, index funds and AI funds.” And all of these solutions can be issued economically as special AIFs.
In conjunction with enhanced security and speed to market, special AIFs afford investors the benefit of increased brand visibility. “Having your own fund strengthens the customer brand while reducing administration and compliance expenses”, says Knoblach. As an added benefit, Oliver Decker, Head of Financial Services at Grand Thornton, is a member of Super Global’s supervisory board. Decker is an authority on the implementation of regulatory requirements and comprehensive structural solutions.
