Luxembourg Financial Group (LFG) and Ganymede Partners have launched an open-architecture platform for managers seeking to create a UCITS III hedge fund or fund of hedge funds.
Luxembourg Alternatives UCITS Platform (LAUP) has been created in response to the growing demand for UCITS III compliant funds, the firms explained.
UCITS III stipulates a number of requirements aimed at protecting investors, covering areas such as transparency, diversification and risk control.
“The UCITS III framework is very attractive for those managers seeking to target private clients across Europe, but it also acts as a stamp of approval for institutional investors looking for regulatory certainty of custody, liquidity and transparency,” said Gareth James, Ganymede founder.
“For investors with the resources to carry out their own operational due diligence, and the investment size to dictate their own terms, there may be more appropriate unregulated vehicles.
“However, for the majority of hedge fund investors, UCITS III offers this framework of certainty, and after Madoff and other losses last year, it is no coincidence that more and more investors are turning to UCITS III for their hedge funds this year.”
LFG and Ganymede also suggested that the increased adoption of UCITS III is being fuelled by a desire to pre-empt the proposed EU Directive on Alternative Investment Fund Managers, which has received criticism from a number of individuals and institutions in the alternatives space