Scotstone offers managers the ability to launch a Cayman domiciled fund as an independent and entirely segregated cell within an existing umbrella fund structure. This gives managers the benefits of launching at very low cost, speed to market (launching without the delay associated with starting a new fund), lower ongoing management fees by benefitting from scale of the existing platforms. Each sub-fund is set up as a Segregated Portfolio that is entirely and legally separate from all other portfolios to avoid any cross-contamination. Managers of cells may elect to move off the platform into a stand-alone fund at any time.
Scotstone Fund Managers Limited (“Scotstone Malta”) is authorised by the MFSA to operate as a De Minimis Alternative Investment Fund Manager, as per the Alternative Investment Fund Managers Directive (“AIFMD”). Non-EU based managers who do not wish to undertake the regulatory and management costs or diversion of setting up another regulatory entity can operate through the regulatory license of Scotstone Malta as a recognised De Minimis Alternative Investment Fund Manager. This will require the relevant investment management activities of the manager to be subject to the compliance oversight of Scotstone Malta, which is currently in the process of opting-in under the AIFMD in order to be licensed as a fully qualified Alternative Investment Fund Manager.
The platform will be established to allow the creation of distinct sub-funds. Each sub-fund will be legally separate from the other sub-funds on the platform and there will be no cross liability between sub-funds. The manager will be able to select which type of Alternative Investment Fund is most appropriate for the given strategy and investor base. It is therefore possible to create sub-funds targeted to Experienced Investors, Qualifying Investors and Extraordinary Investors. The funds are established as Externally Managed Funds and the manager will be required to be regulated in a recognised jurisdiction.
Funds are able to stay on the platform indefinitely. However, the Directors reserve the right to renegotiate the terms of remaining on the platform if assets do not rise to a commercially viable level within two years.
Scotstone Funds SPC, a Cayman Islands domiciled platform to be available for managers wishing to establish a Cayman Islands fund through a hosted cell (the “Company”).
The Company is a Cayman Islands domiciled Mutual Fund having an umbrella structure, meaning that it is able to issue shares to create sub-funds. Investment restrictions and minimum investment amounts will apply to each sub-fund as determined in the respective sub-funds’ offering documents and in accordance with Cayman Islands regulations.
Scotstone has two open ended umbrella fund platforms (the “Platforms”) established to provide investment managers a cost effective method of managing their own fund vehicle.
The Platforms are Maltese domiciled limited liability investment companies with variable share capital licensed as collective investment schemes in the form of Professional Investor Funds having an umbrella structure. Each respective investment company is able to issue shares to create segregated sub-funds targeted to Experienced Investors, Qualifying Investors and Extraordinary Investors. Investment restrictions and minimum investment amounts will apply to each sub-fund as determined in the respective sub-funds’ offering documents and in accordance with Maltese regulations.