Size of Fund
Depending also on the investment strategy, the Platform is typically used to start with capital in the range of €2million to €25 million. If the amount is smaller, we can discuss other possible options and if larger you might want to consider your own structure which we can also build for you.
Typical interested parties for a fund set-up within the Platform are: asset managers wanting to enter the EU market, small/new asset managers or investment bankers who do not have the scale to set-up their own structure but are able to pool some investors in a fund, investment advisors needing an EU regulated structure enabling them to attract more quality investors, project owners looking to pool other investors in a regulated structure, family offices and wealthy individuals wanting to optimise returns in a tax efficient way.
The underlying investments of the funds can be various, including venture capital, private equity, immovable property, projects, commodities, equities, bonds, derivatives, NPLs, crypto assets and others.
Investors in the funds are limited to the so called “Qualified Investors”, with a minimum investment of €100k. Retail Investors would require either a UCITS or AIF set-up, which we can also structure.
Axion International Funds SICAV p.l.c. is licensed by the MFSA in terms of the Malta Investment Services Act and it has subsequently issued segregated funds, the shares of which are available for sales to Qualified Investors. These funds provide a lighter regulatory regime, are more flexibility than UCITS and AIFs, do not require investment restrictions, whilst still being regulated in the EU.
Taxation in Malta
Funds are exempt from income and capital gains tax. Investors are not subject to tax on capital and income gains and do not incur withholding tax on dividend payments from the fund. Certain exceptions apply.
The licensing process which would otherwise be of around 6 months is materially shortened using the platform since the legal structure and the key people have already been pre-vetted by the Malta FSA. In conjunction with the due diligence process, we will discuss with you the objectives and risks of your fund, draft the documents explaining how the fund will work and finalise other agreements. Eventually we will progress matters with the Malta FSA till licensing, involving you only if necessary.
Depending on requirements, we can also obtain a Bloomberg ticker, ISIN and have a listing on an exchange.
Launching the Fund
The time to launch is shortened since the licensing process on the structure has been already concluded and the remaining part would be the additional components for the new fund. Once all the license conditions are fulfilled and the fund is enabled to start, we will coordinate all parties for a seamless launch.
The Board of Directors will provide ongoing governance and control whilst the Investment Committee will be entrusted to establish and review the investments in line with the fund’s objectives and any restrictions, the extent of which will depend on your role and our agreement with you. Your involvement and responsibilities will be agreed and tailored around your experience, expertise and qualifications.
You can also check our Corporate and M&A solutions.