Permal to Onshore up to $4 Billion After Irish Law Change

Mar 9 2015 | 1:55pm ET

The first hedge fund to take advantage of a new structure in Ireland to attract asset managers from offshore locations announced its intentions to do so on Monday.

Permal, a fund of funds, plans to onshore up to $4 billion in assets from the British Virgin Islands to take advantage of the new Irish Collective Asset management Vehicle (Icav), which came into law on March 4. 

The Icav allows any funds regulated under the European retail fund structure Uctics or the Alternative Investment Fund Managers Directive (AIFMD) to market funds across Europe thanks to the new structure. 

By onshoring the company’s funds, Permal will be able to market them across Europe. The firm is likely to onshore roughly 30 accounts worth nearly $4 billion from the firm's domicled Permal Managed Account Platform (PMAP), which currently has 104 accounts and roughly $9.4 billion in assets.

“By creating ICAVs, Ireland has developed a first class onshore structure - a move that enhances its already leading jurisdiction status for regulated funds," said Permal CEO Omar Kodmani in a statement. "This is the direction of investor tide, particularly for Europe where investors are seeking EU-domiciled fund structures and enhanced supervision by the likes of the Central Bank of Ireland.  While we continue to believe that offshore domiciled managers and funds have a role to play, as a general trend we are seeing greater interest in more onshore options, and we will continue to build in this area.”

Commenting on the Act, Pat Lardner, CEO of the Irish Funds Industry Association said:

“The ICAV legislation is an important further step in strengthening Ireland’s standing as a leading domicile for international funds and demonstrates that we are continuing to take a pro-active approach in meeting the evolving needs of fund promoters. We have worked closely with both the Irish authorities and the fund management community to ensure the ICAV is tailored to meet the investor’s needs. The ICAV will also provide an additional option for promoters, complementing the established range of Irish fund vehicles available here.”

The new structure stresses greater independent oversight. Accounts will be overseen by the Central Bank of Ireland, the ICAV Board of Directors, and an unaffiliated third-party service.


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