Introduction
Our client is a fund manager that emerged from a collaboration between an investment company and a project developer. Utilizing both its own capital and funds from affluent individuals and family offices, it specializes in real estate investments, particularly in newly constructed rental housing projects in the Netherlands.
Asset Partners was engaged due to our expertise and hands-on experience in establishing and overseeing investments funds.
Client goals
Our client's goal was to establish a fund structure that could operate within the registration regime or the AIFMD 'light' regime while also being practical to manage.
The property that the investors intended to invest in through the fund was already held by a corporation, and there was a clear intention to circumvent transfer taxes.
Activities
Our work first involved structuring a tax-legal optimized fund. The choice fell on a Fonds voor Gemene Rekening (“FGR”) in combination with an SPV, whereby the investors invest in the FGR and the FGR in turn invests in an SPV that owns the real estate.
The FGR was chosen because of the flexibility offered by this fund structure. Both in terms of initial structuring, but also during the life of the fund.
In addition to providing structural support, we also played a role in drafting and reviewing the fund terms and conditions and the information memorandum. Leveraging our practical experience in establishing and managing funds, we offered guidance to our client regarding decisions related to the documentation's design. Our unique perspective, which encompasses both practical and commercial considerations, allows us to advise and assist our client in a manner distinct from that of a lawyer.
Result
The work resulted in a fund that meets the requirements of our client and its investors. The fund also complies with all (supervisory) aspects that the AIFMD requires of such funds.
The fund was successfully placed in a short period of time and has been registered by the AFM for the registration regime/AIFMD 'light' regime.
Get in touch
Are you looking for an advisor who can think with you from practical experience in setting up and managing a fund? Contact Asset Partners and find out how we can help.
