Our services
Benefit from a turnkey solution for both onshore US and offshore jurisdictions. We guide you through the whole process covering all legal aspects, fund administration, prime brokerage, and domicile, making the process effortless for you. Our clients leverage off our wealth of global experiences through EAM and our partners.
We cater for any fund, fund size, or strategy and can support you whether you are a hedge fund, private equity fund, property fund, commodities fund.
Platforms are approved by relevant regulators and provide a suitable legal structure for investors. The assets and liabilities of each sub-fund are legally segregated from those of the sub-funds on the platforms.
We have engaged globally renowned service providers covering administration, accounting, and investor reporting and provide access to EAM’s network of industry relationships. We have very beneficial agreements in place giving managers the benefit of EAM’s long-term relationships with internationally respected providers.
Our platform solutions
Hedge fund start up solutions
Each of the offshore platforms is structured as a segregated account/portfolio. This means that the asset and liabilities of each sub-fund are segregated or “ring-fenced” from those of the other sub-funds on the platform and avoid any cross-collateral risk. Each sub-fund will operate independently and the manager of the sub-fund will be able to establish its own track record.
The sub-funds on the platforms are managed by EAM and administered by Apex Group. We are seeing a continually growing demand for our fund solutions for the small to medium managers, giving our managers greater scope to the investors, capital and track record. EAM has established relationships with globally acknowledged and respected service providers, including prime brokers, custodians, auditors and legal counsel.
The key benefits of the platforms for emerging managers are:
- Cost effective
The platform offers a cost-effective solution for emerging managers who require back office, fund administration, legal and accounting support. - Time-efficient
We provide the legal structure and documentation required to launch a sub-fund quickly. Time to launch can be within 5 weeks. - Access to experienced service providers and professional advisers
Our partners are best of practice providers and we have secured excellent terms with them. - No additional regulatory requirements
The platform is already authorised as mutual funds and segregated account/ portfolio companies in Bermuda and Cayman Islands and there are no significant additional licensing requirements in those jurisdictions to be obtained prior to sub-fund launch.
FAQs
- What is your total Assets under Management (“AuM”)?
Across all our platforms, our AuM exceeds US$1 billion.
- What is the legal structure of the platforms?
Each of the Bermuda and Cayman platforms are incorporated as segregated accounts or portfolio companies and are authorised as mutual funds. The segregated account or portfolio company structure allows the platform to establish separate sub-funds, each of which is a segregated account or portfolio. Its assets and liabilities are segregated or ring-fenced from the general assets of the platform and the assets and liabilities of outer sub-funds on the platform. This concept of segregation is accepted as a matter of statute and is supported by recent case law. The establishment of a sub-fund does not create a separate legal person. The platform remains the legal person with the capacity to enter into transactions or contracts relating to the sub-fund.
Investors receive participating shares in the sub-fund which are non-voting. Emerging Asset Management Ltd (“EAM”) owns the management shares which are voting shares.
- What is the process of forming a new sub-fund on the platform?
In Bermuda and Cayman, the new sub-fund is established when the sub-fund supplement is filed. The supplement is supplementary to the Private Placement Memorandum for the platform.
The supplement contains details of the offering of the shares including:
- Subscription and redemption terms
- A description of the investment objective and strategy
- Any relevant investment restrictions
- Disclosure of any leverage used
- Details of the service providers
- A description of the custody and prime brokerage arrangements
- Biographical details of the principals of the sub-fund manager
- A description of its contractual arrangements with the sub-fund
- A summary of fees and expenses
In Bermuda, the supplement needs to be approved by the Bermuda Monetary Authority. The sub-fund can only commence business and issue its shares to investors when the supplement has been approved. - What service providers and professional advisers are required for the sub-fund?
The platforms have each appointed a board of directors and company secretary.
EAM has appointed an auditor and legal counsel for the Bermuda platforms and a Cayman Islands Monetary Authority (“CIMA”) approved auditor and legal counsel for the Cayman platforms.
One of the principal benefits of the platform offering is that we have negotiated highly competitive rates with the professional advisers due to the volume of business which they receive from the platforms and these cost savings have been passed on to our clients.
EAM is the fund manager and Apex Group is the administrator and registrar.
The sub-fund will need to appoint a custodian and prime broker although the requirement to appoint a custodian can be waived if there are appropriate alternative arrangements in place for safeguarding of the sub-fund property or if the sub-fund is a feeder fund.
- What are the sub-fund manager’s duties?
The sub-fund manager is responsible for carrying out the day-to-day advisory services of the sub-fund and implementing its investment strategy. Its contractual duties and responsibilities are set out in the Investment Advisory Agreement entered into between the platform on behalf of the sub-fund, EAM and, the sub-fund manager. One of the principal benefits of the platform offering is that it frees up time and resources for the sub-fund manager so that it can focus on its trading strategy and building a successful track-record. - What are the principal regulatory bodies that have authority over the sub-fund?
The Bermuda platform is regulated by the Bermuda Monetary Authority and the Cayman platform is regulated by the CIMA. Both are experienced and well-respected regulators. The regulator may require such information or explanation in respect to the sub-funds as may be reasonably required by them to enable them to carry out their regulatory duties and may require access to the records of the sub-fund.
Audited financial statements must be prepared for the sub-fund and these are submitted to the regulator.
- What are the regulatory requirements for the sub-fund manager?
The sub-fund manager is exempt from licensing requirements in each of Cayman and Bermuda. In Cayman an annual declaration of exemption must be filed by it with CIMA.
The sub-fund manager is required to comply with any local legal or regulatory requirements in the country in which it carries on its business and professional advice should be taken on this.
- Are there any specific qualifications or requirements applicable to the principals of the sub-fund manager?
The principals of the sub-fund manager must be fit and proper persons and have appropriate experience to carry on their business. Short biographical details of the principals will be set out in the supplement. - Is the sub-fund subject to any tax in the platform’s jurisdiction?
There is no income, capital gains, or withholding tax in Bermuda or the Cayman Islands. However, investors are responsible for ensuring that their tax commitments are fulfilled in their country of domicile. Bermuda and Cayman are on the Organization for Economic Cooperation and Development’s “white” list of jurisdictions that substantially implement tax standards and each has signed various Tax Information Exchange Agreements which are bilateral agreements under which countries agree to cooperate in tax mattes through the exchange of information. The directors and shareholders of the sub-fund manager should obtain their own tax advice in relation to local tax law and regulation in the country in which it carries on its business. - What are the principal marketing restrictions on the offer and sale of shares in the sub-fund?
No restrictions apply to investors under the laws of Bermuda or Cayman. There is no limit on the investment amount for sub-funds on either the Bermuda or Cayman platforms. The sub-fund manager should take advice in respect to the legal and regulatory restrictions that may apply in the jurisdictions in which they wish to offer their shares for sale. Generally, the offering will be structured as a private placement to qualifying investors in those countries. - What are the money-laundering rules and regulations applicable to the sub-fund?
As administrator, Apex Group is responsible for money laundering compliance and this involves verification of the investor’s identity and source of funds. Any failure or delay in an investor in providing the required information can result in refusal of its subscription application.
