IS IT DIFFICULT TO START AN INVESTMENT FUND?
The Nordics is a very attractive market – If the Nordics were an own country or economy it would be the 11th biggest in the world by BNP. And that with only 27 million people.
Adding to that there is a very high proportion of wealth in the Nordics, both public wealth as well as private wealth – there is a lot of money that should or could be invested.
For example, there has been a very rapid growth in number of billionaires in Norway. According to the yearly “KAPITAL 400” issue, there is now close to 350 Billionaires in Norway alone.
With interest rate levels close to zero or below the hunt for higher yield is obvious and many wealthy Norwegians are invested in listed shares, bonds, and real estate. To broaden the diversity in underlying invested asset classes is therefore increasingly interesting.
To achieve a critical mass and share the burden of managing these higher yield and alternative investment, many consider the alternative of setting up a fund.
Also, many of these first-generation wealthy people may not always know all the details about how to manage their money and set up an investment vehicle.
Type of fund
There are several different types of funds that can be chosen depending on various components and what type of assets it intends to invest into. Very often the investment idea is started in and from an Investment Firm. If there is established investment strategies and mandates for the Investment firm and the shareholders are not actively exercising their shareholders right, it is starting to take the shape of a fund. An Alternative Investment Fund is then normally the solution, but that comes with a range of considerations.
One thing is to have an investment idea, but when reaching the mark that possibly triggers a need to set up an investment firm or fund also triggers a need to consider how shareholders or fund investors can exit their investments.
That is also something that we at Howart Compliance have experience with and ideas about.
FSA licence evolution
These considerations are expressed in whether to apply for a licence and if so what type of licence. The laws, regulations and market practice will in this context perhaps appear complex and difficult.
However, at Howart Compliance we have taken pride in specialising our services to resolve this in a very efficient way.
To set up an investment firm or a fund will require a minimum of resources, competence, and administration, and it should be clear that the investment size must be at a certain level to carry these costs. In Howart Compliance we have developed a very effective and prudent framework for this. We also see that by ensuring the minimum required in-house resources, Howart Compliance can provide a very high quality, experienced and cost-effective co-sourcing of the required and necessary competences.
If you want to know more about how to set up a fund in the Nordics, please contact us.
About Howart Compliance
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