Types of Investment Funds in Ireland
Updated on Wednesday 22nd March 2023
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One of the most attractive jurisdictions for setting up an investment fund is Ireland. The country offers a wide range of investment vehicles and the businessmen who are interested in how to start an investment fund in Ireland should know that the legislation in the field is very solid and it has incorporated the directives applicable at the level of the European Union (EU). At the same time, investors interested in hedge fund startup should know that Ireland is the top hedge fund destination, as 40% of the world’s hedge funds are domiciled here.
UCITS in Ireland
The undertakings for collective investment in transferable securities (UCITS) are an attractive manner of performing investments in Ireland. Those who are interested in how to start a fund in Ireland as a UCITS structure should know that the vehicle allows the cross-border distribution of the fund, under the EU’s regulations for the development of a European investment market. The UCITS vehicle was established at a European level in 1985, under the European Passport regulations.
The UCITS vehicles are required to receive an authorization issued by the Central Bank of Ireland, the main institution which regulates the investment activities in this country. At the same time, the Central Bank or Ireland issues authorizations for the incorporation of the alternative investment funds (AIFs).
If you're looking for offshore jurisdictions where you can put up your money, the Cayman Islands can be a good choice. One of the most often used entities there is the Cayman SPC, which has a variety of uses. You can find out more about it by contacting our local affiliates who can also help you set up this type of legal entity.
Exchange traded funds in Ireland
Another way of starting an investment activity in Ireland is by setting up an exchange traded fund (ETF), a type of vehicle which was launched in this jurisdiction in 2000. Since then, Ireland became the top jurisdiction for the registration of EFTs and, at the moment, the country has attracted approximately 50% of the European EFT assets.
Alternative investment funds in Ireland
Investors can also start an investment project through AIFs. In this sense, it is important to know that Ireland represents the first jurisdiction which provided a solid legislative framework for the AIFs. The AIF legislation was modified in 2013, following the introduction of the Alternative Investment Fund Managers Directive (AIFMD), which established new rules of law for the fund managers of AIFs.
Ireland offers other types of investment funds and our team of affiliates can offer in-depth advice on this matter. Please contact our partners in Ireland for more information on the Irish investment vehicles.