3rd party AIFM
As an authorized Alternative Investment Fund Manager in Luxembourg, fundcraft is the regulatory partner of fund managers providing premier fund operations. We take care of the full suite of regulatory requirements and reporting under the scope and supervision of the CSSF and the AIFMD in Europe.
Portfolio management is the function where information from asset manager, accounting and the fund’s risk manager is reviewed, evaluated and combined in a comprehensive investment action. It is the decision-making function for all kinds of investment decisions in the alternative investment fund.
fundcraft supports funds as a 3rd party AIFM in monitoring and managing their portfolio in the dedicated or delegated PM model, providing pre-trade reviews of investment proposals, ongoing monitoring and organizing investment committee meetings.
Through our platform’s single source of truth, quantitative and qualitative information is readily available for review and evaluation ensuring a holistic and reliable decision basis.
Under the AIFMD, risk management must be independent from operations and portfolio management. Procedures need to be in place to identify, measure, manage and monitor all risks in an alternative investment fund to prevent or mitigate any undue actions or decisions not in the best interest of the shareholders.
As a 3rd party AIFM, fundcraft supports in defining the fund’s risk management framework, setting risk profiles and required risk limits, continuous monitoring and analysis of all applicable risk categories and providing mandatory risk-relevant declarations.
fundcraft’s platform allows for continuous and complete monitoring of quantitative risk limits and active or passive breaches and provides documentation and quantitative analyses of the risk-related data.
The AIFMD requires an independent valuation of a fund’s assets with adequate and consistent procedures. It must be ensured that the procedure is independent from portfolio management and that conflicts of interest and conflicts with the remuneration policy are mitigated.
fundcraft ensures a AIFMD-compliant asset valuation producing the valuation reports for the fund based on relevant financial and other material information for the process.
With the help of fundcraft’s platform, anomalies are detected and analyzed regarding their impact (materiality within and beyond the fund’s defined materiality levels) on the fund and reported consistently for resolution.
Under the AIFMD, investment decisions need to be made in compliance with the alternative investment fund’s investment strategy, its quantitative and qualitative objectives and its defined risk limits.
fundcraft ensures independent deal compliance monitoring based on the alternative investment fund’s compliance limits, historic data and extensive industry expertise. Further, fundcraft supports periodic regulatory reporting.
On fundcraft’s proprietary platform, the compliance with the latest available legal documentation is ensured, relevant quantitative data is analyzed continuously, and breaches and breach remediations are monitored appropriately.
Marketing and distribution of units or shares are central to the life of an alternative investment fund. The AIFMD aims to provide better investor protection and to ensure that investors receive regular comprehensive information on the fund they invest in.
fundcraft supports alternative investment funds as a 3rd party AIFM in marketing and distribution efforts. Our experienced team ensures compliance with country-specific legal requirements, drafts and files passport notifications and provides continuous monitoring of distribution partners.
Central administration
fundcraft acts as sparring partner for the central administration of alternative investment funds with a dedicated, proactive and tech-enabled offering. We provide corporate secretarial services, fund accounting, transfer agency, tax and regulatory reporting and investor reporting.
The corporate secretary ensures diligent and compliant fund management. This concerns tax compliant valuation and pricing, regulatory compliance monitoring, maintenance of unit- or shareholder registers, distribution of income, unit/shares issues and redemptions and contract settlements and ad-hoc inquiries.
fundcraft’s central administration team is composed of dedicated specialists. We act as a one stop shop where the relevant functions are part of interconnected processes fully integrated into our proprietary platform.
All data is processed through our platform, enabling accurate and customized reporting in full compliance with regulations and best practices.
Accounting is a key aspect of the central administration of alternative investment funds. Accounting needs to adhere to the local GAAP and it needs to be in line with legal and management requirements.
fundcraft’s fund accounting experts provide timely, accurate and compliant fund accounting operations. We ensure full alignment with all other fund administration processes.
Our accounting is fully integrated into our proprietary platform. This ensures that the accounting process and accounting data are always transparent and aligned with all other fund administration processes.
Transfer agency is the direct link between investors and the fund administrator. The transfer agent responsibly deploys the committed capital and upstream proceeds and maintains all financial records of each investor of the alternative investment fund.
fundcraft performs cash monitoring on a permanent basis to optimize and anticipate cash needs and cash receipts during the fund’s lifetime. fundcraft further reports to investors on a continuous basis and provides support and key data.
Our platform enables fund managers to access capital calls, distributions, etc. and provides strategic KPIs in real time. The platform performs investor KYC monitoring shortening the transactions timeframe.
The tax and regulatory environment has greatly evolved in the past few years. European Union legislation and OECD initiatives have been adhered to by Luxembourg and other countries to fight tax evasion and promote transparent tax environments.
The automatic exchange of information between tax authorities of different countries requires clients to disclose more data to the tax authorities in short timeframes. fundcraft ensures its clients that the right amount of data and tax reporting are provided accurately, on time and with less effort.
fundcraft’s platform allows for early automated data capture. The data integrated according to the needs of the various reports and returns required in Luxembourg. Our platform substantially decreases the effort and time spent with input and review of data commonly disclosed in multiple reports.
Investors require timely access to accurate and comprehensive data and reporting to have a complete picture of their assets on all levels. The capital account statement, other financial statements and non-financial reports are central aspects of the communication between fund managers and investors.
fundcraft’s central administration team ensures timely and high quality reporting of all relevant reports to investors. We are dedicated to continuously improving investor reporting based on investors’ needs, latest technology and our experience.
On our platform, we are developing machine learning-enabled real-time reporting that will replace static paper-/pdf-based reporting and allow for better and more in-depth analysis of relevant investor data.
fundcraft has a tech-savvy team of experts with deep industry expertise and proactive mindset.
If you are interested in our offering and would like to hear more or request a demo, please reach out to us through our contact form. Please provide details about your alternative investment fund, such as fund size, domiciliation, and asset class. We will revert to you shortly.