How to Start a Hedge Fund in Ireland

Updated on Thursday 04th May 2017

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Ireland represents a very attractive market for starting a hedge fund. An important aspect when referring to Ireland is that in the last years the country became a leading jurisdiction for the domiciliation of alternative investment funds and hedge funds. More importantly, a proportion of 63% of the European hedge funds are represented by Irish structures
 

Legislation for hedge funds in Ireland 


Investors interested in how to start a hedge fund in Ireland must know that there isn’t a specific regulatory framework designed for such structures. A hedge fund in Ireland is usually incorporated with the purpose of performing alternative investment schemes and thus, they may  use various legislative frameworks designed for investment funds

However, as a general rule, such structures can be registered under two main regulatory classifications. 

Irish hedge funds can be set up as UCITS (undertakings for collective investments of transferable securities) and non-UCITS. UCITS structures are regulated under the European Union’s directives, while the non-UCITS derive from the national legislation applicable in Ireland

The UCITS Directive provides a more flexible regulatory framework, as the investors interested in hedge funds startups under this structure can benefit from the European passport. The regulation is not applicable in the case of non-UCITS vehicles
 

Register a hedge fund in Ireland  


The procedure on how to start a fund in Ireland is given by the regulations applicable by the Central Bank of Ireland, which is the main regulatory body for any type of investment vehicle registered here. 

The fund should be registered under one of the following legal entities: 

•    investment company;
•    unit trust;
•    common contractual fund;
•    investment limited partnership.

In order to start a hedge fund in Ireland, the Central Bank will have to authorize the activities carried out by the vehicle. It is necessary to know that hedge funds set up as UCITS will require an investment manager, who must also be authorized by the institution. 

Businessmen can address to our team of Irish affiliates for more details on the registration of a hedge fund in this country. 

Comments

Dana

May 3, 2017

Hello! I would be interested in finding out more information on the UCITS directive.



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