Alternative Market Briefing

Multifonds finds new AIF structure offers business opportunities to alternative funds

Wednesday, February 13, 2013

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Keith Hale By Beverly Chandler, Opalesque London:

A survey of industry professionals responsible for more than $16tln of assets under administration, conducted by Multifonds, the multi-jurisdictional investment fund software platform provider for administrators, last year found that more than two thirds(69%) believed AIFMD would accelerate the convergence of long only and hedge funds.

In an interview with Opalesque, Keith Hale, executive vice president of client and business development at Multifonds has found that AIFMD is apparently making the EU a more attractive venue for non-EU hedge funds to set up shop.

"We can understand their perspective," Hale says. "There is a lot of convergence between traditional UCITS structures and alternatives and AIFMD is a catalyst for this convergence." Hale believes that hedge funds are becoming more traditional in structure, offering daily liquidity and a more traditional approach to risk management, and there are many hedge funds that have both UCITS vehicles as well as an offshore structures such as limited partnerships.

Hale thinks that the AIFMD is an opportunity for alternative fund managers to gather more assets from people who are currently investing in alternatives through the UCITS structure. "They could create an AIF," Hale says, "And an AIF structure will give a wider capability than the UCITS structure which is more geared for retail investors across Europe."

The AIF ......................

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