EU-Harmonised Alternative Investment Funds for Closed-Club and - PowerPoint PPT Presentation

EU-Harmonised Alternative Investment Funds for Closed-Club and Single Investors Olaf KOEHLER China Offshore Summit Shenzhen 2018 CEO BENDURA FUND MANAGEMENT BETA AG Schaaner Strasse 27 Phone +423 399 400-0 9487 Gamprin-Bendern contact@bendurafunds-beta.li May 22, 2018 | BENDURA FUND MANAGEMENT BETA AG | Page 1 Principality of Liechtenstein www.bendurafunds-beta.li Reg.-No. FL-0002.561.224-1

Contributions to China Offshore Summit Shenzhen 2018 Overview Tuesday, May 22, 2018 EU-Harmonised Alternative Investment Funds for Closed-Club and Single Investors Thursday, May 24, 2018 Liechtenstein a Reliable Hub: EU-Harmonised Alternative Investment Funds as Corporate Structuring Vehicles May 22, 2018 | BENDURA FUND MANAGEMENT BETA AG | Page 2

Liechtenstein AIFs for Closed-Club and Single Investors Table of Contents EU Alternative Investment Fund Managers Directive (AIFMD) The resilient Alternative Investment Fund (AIF) structure AIFM’s governance framework and internal monitoring systems Individual AIF solutions Closed-club and single investor AIFs Single asset / single target AIFs Subscribing fund units and settlement via clearing systems Purpose and advantages of central counterparties (CCP) Fund unit subscripiton and settlement May 22, 2018 | BENDURA FUND MANAGEMENT BETA AG | Page 3

Liechtenstein AIFs for Closed-Club and Single Investors The resilient Alternative Investment Fund (AIF) structure Portfolio management External control authorities Risk management Alternative Investment Fund level Fund + AIFM level Fund Manager Marketing Financial (AIFM) Fund administration Market Compliance Authority Management External audit Investor(s) Alternative Investment Fund (AIF) Depositary Prime broker(s) Leverage Target Financing options investment(s) institution(s) May 22, 2018 | BENDURA FUND MANAGEMENT BETA AG | Page 4

Liechtenstein AIFs for Closed-Club and Single Investors AIFM’s governance framework and internal monitoring systems Internal Legal & Board of Directors policies, regulatory procedures require- and control ments Internal Financial Market Authority framework audit Compliance Managing Board Depositary bank Risk control External audit Controlling Business areas (risk management) May 22, 2018 | BENDURA FUND MANAGEMENT BETA AG | Page 5

Liechtenstein AIFs for Closed-Club and Single Investors Closed-club, single investor AIFs / single asset, single target AIFs • Exclusive funds for closed-club and single investors possible • Accredited approach to anonymise market participants • No limitations regarding the number of investors and target investments • Application range amongst others:  wrapping any types of assets  succession and tax planning  anonymising of strategic or activistic investments  protection against hostile takeovers  asset structuring within more or less complex corporate structures May 22, 2018 | BENDURA FUND MANAGEMENT BETA AG | Page 6

Liechtenstein AIFs for Closed-Club and Single Investors Purpose and advantages of central counterparties (CCP) Definition: A Central Counterparty is a mutually trusted financial intermediary which mitigates the mutual counterparty risks of a financial transaction by acting as contractual seller to each buyer and as contractual buyer to each seller. Advantages: • Reduced counterparty risk • Reduced processing costs (no due diligence of counterparty) • Increased offsetting efficiency • Enables anonymous trading May 22, 2018 | BENDURA FUND MANAGEMENT BETA AG | Page 7

Liechtenstein AIFs for Closed-Club and Single Investors Fund unit subscription • Bank of investor files subscription form without disclosing investor, covenants that investor is eligible pursuant to AIF’s prospectus, submits to depositary bank of AIF • Depositary bank forwards subscription details to AIF • AIF accepts subscription, instructs depositary to settle transaction • Depositary bank exchanges settlement details with bank of investor • Bank of investor and depositary bank instruct their regarding Central Securities Depositories (CSD) with settlement details • Transaction matches, fund units and monies are exchanged at CCP May 22, 2018 | BENDURA FUND MANAGEMENT BETA AG | Page 8

Liechtenstein AIFs for Closed-Club and Single Investors Fund unit settlement using uncertificated intermediated securities ICSD with local Direct access ICSD with SIX SIS CSD to CSD Inhouse agent «Inhouse» Inhouse account CSD SIX SIS CSD ESES (France) (Switzerland) UBS (agent/custodian) ICSD: Euroclear ICSD Clearstream BNP Paribas (Belgium) (Luxembourg) (agent/custodian) Instruction Instruction Instruction Instruction Instruction DEPOSITARY of AIF Subscr. Bank of investor Bank of investor Bank of investor Bank of investor as paying agent AIF as Issuer Investor Investor Investor Investor of fund units May 22, 2018 | BENDURA FUND MANAGEMENT BETA AG | Page 9

BENDURA FUND MANAGEMENT BETA AG Contact BENDURA FUND MANAGEMENT BETA AG Schaaner Strasse 27 9487 Gamprin-Bendern Principality of Liechtenstein Phone +423 399 400-0 contact@bendurafunds-beta.li www.bendurafunds-beta.li May 22, 2018 | BENDURA FUND MANAGEMENT BETA AG | Page 10