SAC offers compelling new route for fund managers in Bermuda
Hedgeweek reported on Incu Global that operates a Segregated Account Company (SAC), an umbrella structure in Bermuda that now offers fund managers a new cost-effective route to launching a fund. This new model is based on cell structures. Each manager has his own cell structure – effectively a sub-fund – whose assets and liabilities are ring fenced from all other cells operating on the platform.
There are two reasons for this new route for fund managers by SAC. Firstly, more compliance can make fund managers feel overwhelmed easily. Secondly, high costs and speed of entry (set-up can take up to months) poses a problem in delaying the set-up of new funds. SAC strives to eliminate these problems reducing the cost and speeding up the set-up and approval by the BMA in four to six weeks.
Incu does not stand alone but work with a number of preferred service providers including Circle Partners, Wakefield Quin and Deloitt. However, managers are completely free to appoint their own counterparties to the fund.
According to D’Silva, owner and director of Incu Global, this new model offers fund managers the chance to build a track record that attract more investor capital if they do well. This in turn will give them the opportunity to set up their standalone entity where an ‘in specie’ transfer will take place on a specific date. This means that investors will move across to the new fund structure, and that structure will own shares in the existing fund. Once all investors have moved across, stage 2 will start where the fund’s positions will be transferred to the new entity. Importantly, there will be no need to liquidate the portfolio and start all over again as there is a continuation in the structure with the help of Circle Partners that are the administrators assisting in the process.
For more details about this new compelling platform that SAC offers in Bermuda please click HERE.