Asset Management for Funds in Bermuda

Updated on Monday 20th November 2017

Asset Management for Funds in Bermuda Image
Bermuda is a top international financial center, being a global leader for certain investment activities. The local authorities have enacted in the last years several regulations that led to the development of the asset under management held by the Bermuda funds. The investment market is also very well developed for private equity activities and investors interested in how to start a fund in Bermuda should know that they can benefit from exemptions for the standard authorization required for investment vehicles, depending on the value of the assets under management held by the fund.

Authorization exemption in Bermuda  

As a general rule, the investment funds operating on this market have to receive an authorization to operate here from the Bermuda Monetary Authority (BMA). However, there is an exemption in this sense, offered to Class A funds. Investors interested in how to start an investment fund in Bermuda must know that one of the qualifications for Class A funds refers to the value of assets under management of the respective fund

Class A funds in Bermuda  

The exemption is granted if the fund’s assets under management have a gross value above $ 100 million. At the same time, the fund can also be a member of an investment management group with assets under management with a value of more than $ 100 million. Such funds can only be registered by qualified investors. The main advantage in this sense refers to the fact that the fund can start its operations in a short period of time, after the investors have filed specific information on the fund with the BMA

Class B funds in Bermuda 

Another option applicable in this case is under the Class B funds, which can also be exempt from registration in the situation in which the value of the assets under management is below $100 million and the funds are represented by non-licensed fund managers

Our partners can provide further details on this subject, as well as on the assets under management requirements available for a hedge fund startup in Bermuda.

Please contact our team of affiliates in Bermuda for consultancy services.