The EU-regulations that came into effect in 2013 have changed the European landscape for alternative investments. Not only hedge funds but also private equity, venture capital and real estate funds are affected by this Directive. Due to our involvement in various industry bodies we have been working on this since the beginning. The consequences for different funds are analyzed and we prepare a best approach going forward.
Privium Fund Management has two entities, Privium Fund Management Limited and Privium Fund Management Limited (NL) BV that are authorised and regulated as Alternative Investment Fund Managers (AIFMs) according to the Alternative Fund Managers Directive (“AIFMD”). They are referred to as Privium AIFMs in this section. Privium AIFMs are authorised to manage collective investment undertakings that are subject to the AIFMD in various strategies. These strategies may include the more traditional Equities and Bonds but also Hedge Funds, Fund-of-Funds, Private Equity, Real Estate and investments in Infrastructure.
Privium Fund Management’s institutional infrastructure allows for seamless Portfolio, Compliance and Risk Management functions. These are three key responsibilities under the AIFMD.
For investment management purposes Privium AIFMs can manage investments in accordance with the AIFMD and provide all the necessary reporting (e.g. Annex-IV to the regulator) and liaise with service providers as the Fund Administrator, Prime Broker/Custodian and the newly defined Depositary. For fund structures domiciled offshore we interact with a provider of Depositary-light facilities. At Privium Fund Management we pride ourselves to be service provider agnostic and have good working relationships with many well-known names amongst the service providers.
Risk management activities are carried out in line with AIFMD requirements, and front office activities link with our risk systems in order to provide seamless oversight in order to stay compliant. Investors in our funds benefit from multi-layer risk management. First layer is the ex-ante, forward looking risk management deployed by the portfolio manager. Secondly, at Privium Fund Management, we have a dedicated Risk Manager who monitors the risks in each investment portfolio on a daily basis.