Fund Set-Up | Setup of Fund

By: Custom House Group  05/12/2011
Keywords: service providers, investment management, stock exchange


Custom House will, having assisted in the selection of jurisdiction and domicile of the fund:

  • Draft and assist in the preparation of the Offering Document;
  • Liaise with the Promoters and all other parties and their professional advisors, collating the information necessary for inclusion in the Offering Documentation and the various Agreements;
  • Obtain independent¬†legal and professional advice in the relevant jurisdiction with regard to the accuracy and appropriateness of statements in the Offering Memorandum regarding taxation or offering of the Shares of the company within certain jurisdictions;
  • Obtain Consent from Attorneys and Auditors and other service providers, if required, for their names to be included in the Offering Document;
  • Assist in the preparation and execution of the Management, Investment Advisory, Custodial, Administration, Registrar & Transfer Agency, Placing Agency, Broker or Bank, and any other relevant service provider agreements or account opening documents as may be required.
  • Assist in the introduction to and selection by the client of all, or any, of the following service providers as required: Custodian Bank; Trust Bank; Payment Bank; Registrar and Transfer Agent; Trading Banks; Cash Manager; Auditor; Legal Advisor(s); and local Company Agent;
  • Assist with the introduction of Prime or Clearing Brokers if required, although, usually managers have established their own brokering relationships before they come to Custom House;
  • Instruct, brief, and pay the fees of the local Legal Advisors and Registered Company Agent to incorporate the Company and, if required, a subsidiary trading company, or companies, as well as management or investment management companies;
  • Instruct, brief, and pay the fees of the Legal Advisors to ensure that the Memorandum & Articles of Association and the Offering Documentation comply with each other and with legal Company and Mutual Fund or Security Laws;
  • Instruct, brief and pay the the fees of the Legal Advisors to ensure that the fund (and related companies) are properly registered and/or authorised under local Company and Mutual Fund Law and Regulations;
  • Liaise with the Legal Advisors, local government and regulatory authorities and all other service providers, as necessary;
  • Identify and appoint directors, as required;
  • Anything else needed to organise the fund company.

Listing on the Irish Stock Exchange

  • Advise on the selection of a Sponsor, if an Irish Stock Exchange Listing is required;
  • Brief and liaise with the Sponsor, and all other parties;
  • Arrange for all necessary documentation, including the Listing Particulars, and other procedures to be completed, as required by The Irish Stock Exchange.

Listing on Other Stock Exchanges

  • Custom House can also assist in obtaining a listing on other Stock Exchanges if required.

Promotional Assistance

  • Arrange and organise the design and printing of the Offering Documentation, including Appendices, Subscriptions Forms and Bank Transfer Letters of Instruction and the design and printing of an investment or sales memorandum, as required;
  • Assist in the preparation and distribution of a press release announcing the incorporation and launch of the fund and assist in the preparation of promotional advertisements, if required;
  • Arrange for publication of share price information in the appropriate media such as specialist investment publications and data services, as required.

Keywords: investment management, service providers, stock exchange

Other products and services from Custom House Group


Bewaarder Services

The appointment of a Depository is mandatory under the Dutch Financial Markets Supervision Act (in Dutch: Wet op Financieel Toezicht) in the case that the Fund is not a legal person and optional in all other cases. Custom House Fund Services provides Depository services under Dutch laws to hedge and long only funds as well as to private equity and real estate funds.


Cash Management Programme

When establishing an offshore fund it is important to clearly demonstrate to potential investors that the fund has been organised so that the custodial arrangements ensure that the assets are as secure as possible and protected from any third party risk, except, of course, the inherent market risk.


Managed accounts and many other services

Once the fund has been established, Custom House will act as administrator to the fund, overseeing the day to day operations and liaising between the Investment Manager and/or Investment Advisor, Broker, Custodian and Payment Bank, Auditor, Regulatory Authorities and, if listed, the relevant Stock Exchange authorities.


Administration Fees and Annual Operating Costs

The highest single overhead for most funds is the cost of investment management, particularly if the fund is profitable and the investment manager is paid an incentive, or profit participation fee, although, of course, from the investor's point of view, the bigger the actual incentive fee, the better.


Hedge Fund Administration companies | Fund Administration Service

Custom House aims to establish a personal relationship with its client funds and particularly the investment manager and brokers, by appointing one of Custom House's administration officers as the permanent "Account Manager", who will be responsible for liaising with the investment manager's and broker's back offices.