There are a number of key factors to take into consideration when deciding whether to structure an investment fund under either the UCITS or the AIF regime such as the profile of the investor audience and investment strategy of the fund. 

UCITS

UCITS have their basis in EU legislation and once authorised in one member state, may be marketed throughout the EU, without further authorisation. This is described as an EU passport.

Davy Fund Services provides a UCITS Platform.

ALTERNATIVE INVESTMENT FUNDS

AIFs are those funds authorised by the Central Bank of Ireland which, by virtue of being compliant with AIFMD, can be marketed throughout the EU to investors who meet the relevant criteria and where the AIF meets the marketing rules.

In order for AIFs to meet the requirements for AIFMD, the AIF is required to appoint an AIFM which may be internal or external. DIFS can fulfil the role of an external AIFM.

QUALIFYING INVESTOR ALTERNATIVE INVESTMENT FUNDS

Within this sector, QIAIFs are often the fund vehice of choice for private and institutional investors who are undertaking large scale investment in real estate, private equity or other alternative asset classes. QIAIFs can be set up as open-ended, closed-ended or as limited liquidity type funds with maximum flexibility being a key feature of these funds.

The total asset value of Irish Qualifying Investor Funds currently exceeds €204 billion.*


*Source: Central Bank of Ireland (December 2012)