ADVANTAGES OF UTILISING A THIRD PARTY AIFM

The cost of setting up the necessary AIFMD governance frameworks can be significant, time consuming and resource intensive; it often proves more cost effective to outsource this to a specialist.

A third party AIFM is already familiar with navigating the regulatory frameworks and has existing protocols in place, reducing the administrative burden and time taken.

The AIFM has overall responsibility for both portfolio and risk management functions. GFM will delegate portfolio management to the investment manager / advisor, allowing those with the ultimate deal structuring experience to concentrate on both investments and monitoring, leaving GFM to perform the required oversight functions and navigate the AIFMD regulatory and reporting aspects.

Investors and boards tend to view the separation of a third party AIFM from internal investment management as an advantage, providing an additional layer of independent oversight, as well as mitigating potential conflicts and giving a clear line of reporting and escalation to boards.