Create-your-own SICAV SIF funds-platform update

KMG SICAV SIF is currently talking to IFAs, accountants and entrepreneurs interested in creating their own SICAV SIF funds, having launched a platform in July.

KMG SICAV SIF launched a platform for asset managers, advisers, family offices, high-net-worth individuals and entrepreneurs to create their own Luxembourg-regulated SICAV SIF funds.

The open-architecture platform caters to all asset classes including hedge funds, private equity and real estate, plus no restrictions on leverage.

It also offers a faster route to the market. Funds can be established and open for capital in a few weeks compared to the months it takes to launch a traditional fund, the company said.

KMG believes the platform is more cost effective as economies of scale mean a lower bottom line. It provides all office support, administration and other services necessary for the creation and management of a fund.

The off the shelf solution is simpler as entities establishing a SICAV SIF fund do not have to apply for additional licences, said KMG, which can distribute in Europe and internationally.

Mudd said the platform has had interest from entrepreneurs looking for private equity: “One entrepreneur is in the shipping business looking to put an amount into a fund to use as a base to grow finance and a fleet.

“We’ve seen another similar proposal from an entrepreneur in Abu Dhabi who has developed 14,000 properties in the region so far and wants a fund as an alternative method of marketing.”

Mudd considers launching a SICAV SIF fund gives financial advisers and affluent investors control over their assets. “With a SICAV SIF fund, an IFA can become a product provider, not just a distributor.”

Alan Morgan-Moodie, chairman of the Association of International Life offices said: “It sounds like an exciting project and just what needs to happen in the financial services. I can see the KMG SICAV SIF platform being hugely practical to a lot of investment professionals.”

Mudd believes the idea has broad based appeal. “It seems to suit most people but we are keeping an eye on UCITS IV and other offshore jurisdictions.” We have the facility to build in Cayman, he added.