Choosing the right structure for your investment fund in Gibraltar is crucial. Here’s a detailed comparison of Private Funds and Experienced Investor Funds (EIFs) to help guide your decision.
- Exclusivity: Limited to a maximum of 50 investors, fostering a close-knit investment environment.
- Streamlined Regulation: Quick and cost-effective setup, requiring only a notification to the Gibraltar Financial Services Commission (GFSC) within 14 days.
- Service providers: Company Secretary, Administrator recommended but not required, no specific licensing requirements for appointed directors and no requirement to appoint a custodian or an investment manager. It can be self managed by its directors. If the fund qualifies as a ‘small company’ it is also exempt from appointing an auditor.
- Flexibility: Minimal regulatory requirements allow for more diverse investment strategies and management.
- Cost-Effective: Lower setup and maintenance costs due to reduced regulatory burdens.
- Minimum Investment Required: Typically, no minimum investment is mandated, allowing flexibility for smaller investments.
- Typical Legal Structure: Often structured as a Limited Partnership (LP) or an Incorporated Cell Company (ICC) for flexibility and investor protection.
- Close-Knit Investor Groups: Ideal for friends, family, or small circles seeking a less formal structure.
- Quick Deployment: Perfect for those needing a rapid launch with minimal regulatory hurdles.
- Cost-Conscious Investors: Attractive to those prioritizing low administrative and regulatory expenses.
A private fund must remain private for at least one year before being able to convert into an EIF.
- Qualified Investors: Designed for high-net-worth individuals, institutional investors, and seasoned investors.
- Regulated Framework: Regulated by GFSC, ensuring regulatory oversight and investor protection.
- Time to market: EIFs have the facility to launch and then notify GFSC within 10 days from the launch date.
- Robust Governance: Must appoint at least two Gibraltar-resident directors and a licensed EIF administrator, ensuring strong governance.
- Service providers: Administrator (domiciled or approved by GFSC to act as Administrator for EIFs), Auditor (based in Gibraltar), Company Secretary (based in Gibraltar), at least two directors resident in Gibraltar. It can be self-managed by its directors
- Transparency: Adheres to stringent reporting and disclosure standards, enhancing investor confidence.
- Minimum Investment Required: The minimum investment for an EIF is €100,000, reflecting its appeal to sophisticated investors.
- Typical Legal Structure: EIFs commonly adopt a corporate structure such as a Gibraltar Private Limited Company (PLC), providing robust governance and regulatory compliance.
- Sophisticated Investors: Tailored for high-net-worth individuals and institutions seeking a secure environment.
- Advanced Strategies: Suitable for funds employing diverse and complex investment approaches.
- Institutional Appeal: The regulated structure attracts institutional investors looking for a compliant and secure investment platform.
Setting up your fund in Gibraltar offers strategic advantages, including a robust financial services sector, a favourable tax environment, and a strong regulatory framework. Whether you opt for the flexibility of Private Funds or the sophistication of EIFs, Gibraltar provides an efficient platform to achieve your investment goals.
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