Park Place Capital to launch UCITS using hedge fund fee structure
London headquartered investment advisor, Park Place Capital Ltd., is to roll out a UCITS using the same fee structure as its hedge fund, Polaris Prime Europe. Prospective investors will be charged annual management fees of 1.5 per cent and performance fees of 20 per cent. The Lux-domiciled Park Place L/S Equity UCITS will mirror Polaris Prime Europe’s equity L/S strategy, which uses bottom-up fundamentals and top-down analytics to pick stocks and will be hosted by SEB, whom the firm have long regarded as a leading European prime broker. Steven Solmonson (pictured), President of Park Place Capital, told Hedgeweek that the reason for adopting an identical fee structure for the UCITS was cost. “We spent a great deal of time speaking and listening to prospective investors at the outset, and over and over, they were concerned that the total operating cost for the UCITS structure would be prohibitive,” explained Solmonson via email. With vendor costings too high amongst the many that Park Place spoke to, Solmonson said that, in addition to offering quality back office and clearing support, it needed to find a partner that could keep the UCITS fund’s overall operating costs low and competitive; and ultimately chose SEB. “Because they created a prepackaged umbrella, with organisation, admin, legal, directors, etc they were able to bring the costs in line to meet our requirements,” said Solmonson. “While they do charge a UCITS manager sponsor fee, the savings in admin, set-up, legal, audit more than offset it. Bottom line, the total cost will not exceed the non-UCITS, and in fact, it is likely to be slightly less.” The Park Place UCITS is expected to go live October 1st with USD20 million. France, the UK and possibly Scandinavia will be selected first.
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