The ADGM has in place a world-class funds framework that is based on Common Law. It offers fund managers an efficient, zero-tax rate business environment operating to international regulatory standards. ADGM’s funds framework provides class-rivaling costs and time-to-market, with globally competitive minimum capital requirements. There are no remuneration restrictions on fund managers.

What’s on offer – for FUND MANAGERS

  • Legal certainty – direct application of Common Law
  • 0% tax for corporates and individuals
  • Effective and cost-effective authorisation
  • Low minimum capital requirements

  • No remuneration restrictions
  • Flexible arrangements for delegation of duties
  • Access to world-class infrastructure & skilled workforce
  • Ability of foreign fund managers to establish & manage ADGM funds

AUTHORISATION OF FUND MANAGERS

The FSRA applies a risk-based assessment to the authorisation criteria, with a less rigorous and risk-proportionate approach applied to a fund manager’s application when non-retail funds are being managed, in comparison to a more rigorous approach that is aplied to the authorisation of a fund manager seeking to manage and sell Public Funds.

STARTUP FMC

Less than 30 clients

Professional clients only

Net AUM lesser than US$ 250 million

RESTRICTED FMC

Professional clients only

No restrictions on AUM or number of clients

RETAIL FMC

All clients including retail clients

No limits on AUM or number of clients

STARTUP FMC

Less than 30 clients

Professional clients only

Net AUM lesser than US$ 250 million

RESTRICTED FMC

Professional clients only

No restrictions on AUM or number of clients

RETAIL FMC

All clients including retail clients
No limits on AUM or number of clients

STARTUP FMC

Less than 30 clients

Professional clients only

Net AUM lesser than US$ 250 million

RESTRICTED FMC

Professional clients only

No restrictions on AUM or number of clients

RETAIL FMC

All clients including retail clients

No limits on AUM or number of clients

Advantages – for FUNDS

  • 0% tax on fund vehicles
  • Efficient and cost-effective establishment process
  • Limited asset class & spread restrictions for public funds
  • No maximum investor restrictions

  • No minimum AUM requirements
  • Master/Feeder/Umbrella fund structures available
  • Access to world-class service providers
  • Can use the office/registered address of the fund manager

TYPES OF FUNDS

PUBLIC FUNDS

  • All client types, including retail clients
  • No minimum investment requirements
  • Increased level of regulatory oversight
  • Restricted investment/borrowing powers
  • Registration with FSRA

EXEMPT FUNDS

  • Professional clients only
  • US$ 50,000 minimum investment
  • Private placement
  • Reduced regulatory requirements for fund manager
  • Notification to FSRA

QUALIFIED INVESTOR FUNDS

  • Sophisticated Professional clients only
  • US$ 500,000 minimum investment
  • Private placement
  • Minimal regulatory requirements for fund manager
  • Notification to FSRA

PUBLIC FUNDS

  • All client types, including retail clients
  • No minimum investment requirements
  • Increased level of regulatory oversight
  • Restricted investment/borrowing powers
  • Registration with FSRA

EXEMPT FUNDS

  • Professional clients only
  • US$ 50,000 minimum investment
  • Private placement
  • Reduced regulatory requirements for fund manager
  • Notification to FSRA

QUALIFIED INVESTOR FUNDS

  • Sophisticated Professional clients only
  • US$ 500,000 minimum investment
  • Private placement
  • Minimal regulatory requirements for fund manager
  • Notification to FSRA

PUBLIC FUNDS

  • All client types, including retail clients
  • No minimum investment requirements
  • Increased level of regulatory oversight
  • Restricted investment/borrowing powers
  • Registration with FSRA

EXEMPT FUNDS

  • Professional clients only
  • US$ 50,000 minimum investment
  • Private placement
  • Reduced regulatory requirements for fund manager
  • Notification to FSRA

QUALIFIED INVESTOR FUNDS

  • Sophisticated Professional clients only
  • US$ 500,000 minimum investment
  • Private placement
  • Minimal regulatory requirements for fund manager
  • Notification to FSRA

How we can help

  • Advice on fund structuring
  • Fund documentation, including Private Placement Memorandums
  • Fund authorisations and setups
  • Fund accounting and audit
  • Fund compliances

Why KPI?

  • We helped authorise the first Foreign Fund Manager at the ADGM
  • We have consulted on fund structures in multiple offshore & onshore jurisdictions
  • Our strong background in finance helps provide bespoke recommendations
  • We have been at the ADGM since it’s inception – the 1st entity to register at the centre.

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Lets discuss your SPV requirements, over a call, or over coffee!