INVESTMENT FUND SET UP AND MANAGEMENT
Progressive way to profit
The use of collective investment to generate profits is a well-known process for decades. However, the rules and procedures for setting up an investment fund or an investment company are less well known. Do not get discouraged by the time and administrative demands of the process. We will help you!
The investment fund, a unique tool for capital appreciation and tax-deductible income
The fundamental idea of an investment fund is to raise money from individual depositors and to jointly achieve low-risk profits. This is possible especially due to the determination of risks because the funds allow investing in to a variety of different projects, according to the investment strategy. The allocation of funds to more activities is much safer for depositors. Depositors benefit in particular from the so-called financial leverage. The higher the volume of invested funds, the higher the profit. The concept of investment funds is over 150 years old and is still one of the most effective forms of money appreciation in relation to the risk involved. The first investment fund was established in Scotland and soon found many satisfied clients.
Within the investment fund the money of many depositors is valued, risk diversifies and the depositor obtains special and professional fund management. The investment fund is in the form of a legal entity, usually a joint-stock company. Funds are added to the fund by subscription of shares. Each investor becomes a shareholder.
Startup of an investment fund
Establishing an investment fund is a very demanding process that requires long-term background preparation. You will need legal and tax advice and it is necessary to prepare subscriptions of shares, statutes, application for listing in investment funds and much more. It is also necessary to perceive the link to the local regulator conditions, in the UK this is the FCA and in the Czech Republic, this will be the CNB.
What does it mean QIF – a fund of qualified investors?
Fund of qualified investors (QIFs) is an effective instrument of collective investment based on a defined investment strategy but is not intended to collect funds from the public, but from qualified investors - people, who declare their qualifications in writing that they have experience in investing in assets of the fund of qualified investors QIFs.
Funds of qualified investors allow investors to participate in interesting investments, that were previously reserved for institutional investors and banks.
Fund of qualified investors (QIFs) has a minimum of 2 qualified investors, their maximum number is not limited by the law.
To set up an investment fund, work with the professional consulting firm ZENRON and its partners, who will jointly carry you through the entire administrative and statutory process. In cooperation with the renowned ZENRON office and its partners who have many years of experience in the field, we will be able to set up the investment fund stress free, easy and with minimal cost of time and money. Our team of helpful, experienced and qualified specialists, can ensure you will have an investment fund set up very quickly! We will be happy to provide you with more details.
Tax advantage for investment funds
ZENRON tax experts will be happy to design a suitable structure with a maximum saving of time and resources.
Where and When is it advisable to set up an investment fund? How does LP work? What is a PLC? How about local regulation? and many other questions we are ready to answer thanks to the many years of experience of our partners and the entire ZENRON team.
For our clients we set up several types of funds according to the investment strategy:
1) Private equity fund
Private equity fund can only invest funds in assets that are not publicly tradable. In practice, investments of such funds are invested in start-up companies, shares in attractive companies can also be invested in companies with financial problems, the so-called distressed asset / undervalued asset with a legal or financial problem. By providing capital from the fund's assets to the invested company, the fund becomes a shareholder in the company's future profits. According to the amount of the investment, the merger or acquisition of not only the indebted company can take place.
What you will get by setting up a private equity fund:
- Capital for the life of the fund, usually 10 years
- Improving cash flow for your businesses
- Full control over fund management
- The high yield of the fund
- Tax benefit
2) Real estate fund
With a real estate fund, you can own real estate or buy a share in a real estate company with a minimum investment or effectively manage your real estate portfolios.
What you will get by setting up a real estate fund:
- Rental income from owned properties
- Protection of money resources from inflation
- Secure investment in the form of co-ownership of the property
- Tax benefit
- Efficient management of a high-yield investment portfolio
3) Venture capital fund
The fund allows for investment in innovative projects, start-ups, great technological breakthroughs or starting new businesses with an attractive business plan. The investor acquires a share in the company.
What you will get by setting up a venture capital fund:
- Private equity to finance business activities
- Experienced mentors with a network in the form of active investors
- Tax benefit
- An investment tool for your growth
4) There may also be investment funds focused on investment in art, vintage automotives, wine, whiskey and much other interesting investment assets.
Do not hesitate to use our services, we are happy to prepare a concrete concept of financing for your ideas at a non-binding informative meeting.
Collaborate with real professionals in the industry and get a great deal of insight into the establishment and management of funds.
After filling in the contact form, we will assure you that cooperation with us is the best way to set up an investment fund.
What form could funds have?
- A classical legal entity (limited liability company, joint stock company, limited partnership, a European company, cooperative society)
- SICAV (a joint stock company with variable capital)
- Limited partnership on the investment certificates
- A unit trust
- Trust fund
Fund type is related to legal form and in general, funds operate in two forms:
- Open fund - Investors are allowed to enter and exit during the life of the fund.
- Closed fund - Once the fund receives investment from investors and has reach its required or desired amount, it is closed for other potential investors.
SICAV / Société d'investissement à Capital Variable / Investment fund with a variable capital
A very popular and practical form among ZENRON clients is a popular investment fund with variable capital called the SICAV, which brings together elements of a joint stock company adapted to collective investment. The SICAV is a very suitable type of investment instrument with the option of creating further sub-funds. In the case of SICAV sub-funds, it is important to note that these are only accounting and asset-separated parts of the SICAV's assets that do not have their own legal personality.
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