Marketfield Asset Management has received Central Bank of Ireland authorisation for its Marketfield Dublin fund, a liquid alternative fund, previously offered as a 1940 Act fund in the US, and as a Cayman offshore fund.
The redomiciliation marks the first time the strategy is being made available in Europe under the new Alternative Investment Fund Manager Directive (AIFMD).
Marketfield redomiciled its Cayman fund to Ireland as a QIAIF (Qualifying Investor Alternative Investment Fund) as European institutional and wealth managers show a preference for European regulated funds. The QIAIF is more flexible than UCITS for alternative strategies allowing physical shorting and broader investment restrictions.
The Irish QIAIF structure provides Marketfield with the ability to physically short single name stocks and effectively replicate the investment opportunity it offers to non-European and domestic US investors. The fund is initially being offered via wealth management distribution channels in Europe.
Michael Shaoul, chief executive of Marketfield, says: “We wanted to find a solution for a fund that could be broadly distributed across Europe and that uses a legal structure that investors will be comfortable with. It is always hard dealing with new legislation, and it would have been impossible to achieve this without very good legal advice and the help of Carne. You really need a strong local presence to support you, someone the local regulators are comfortable dealing with.”
John Donohoe, chief executive of Carne Group, says: “The new Irish QIAIF structure offers opportunity for non-European fund managers who wish to examine distribution possibilities in Europe, especially for alternative strategies. Carne’s team has worked closely with regulators and lawyers in Ireland to facilitate the redomiciliation of Marketfield’s fund to Ireland. Carne’s AIFMD-authorised management company and awareness of local requirements and familiarity with the needs of alternative fund managers has facilitated a smooth approval process and successful launch.”
Carne Group was the first firm to launch an Independent Management Company solution to be authorised under the AIFM Directive, which came into force on 22 July. The Carne AIFM Company is available for use by third party fund managers and includes a risk management team as well as incorporating the capital requirements the AIFMD has introduced.