To Bundle or Unbundle? Key Considerations for Fund Managers Launching in Europe

The Alternative Investment Fund Managers Directive (AIFMD) requires funds domiciled in Luxembourg or Ireland to have an EU-based fund manager, an authorized depositary and an EU-licensed fund administrator. This paper makes the case for working with independent providers for these capabilities versus a single vendor to meet this requirement.

Some institutions profess to offer all capabilities of AIFM, depositary and fund administrator under one roof and tout the benefits of a “one-stop-shop.” On the face of it, this bundled approach may appear to be a simple, straightforward and efficient way to meet the AIFMD requirements, especially for newer entrants hoping to accelerate their launch. On closer examination, however, there are several pitfalls and misperceptions around bundling these services, and several compelling reasons to consider establishing discrete relationships with three independent, specialized providers.

Download this eBook in which we look at the key considerations that factor into the decision whether to bundle or unbundle your service solution.