Responding to the increasing demands of diversification and international regulation

26th May 2017

Our experience over the last couple of years is that investors are seeking to expand their global exposure and managers are seeking to expand their investor base. Furthermore, managers are exploring product areas beyond their traditional remits. This desire for diversification is partly a response to increasing geopolitical volatility but planning for it is made even more difficult by the increasingly complex regulatory environment.

As a result, advisors to fund managers and investors need to be very nimble indeed. Ten years ago, lawyers and administrators performed a much narrower set of services but now the requirement is not only to operate in a number of different jurisdictions but also to offer more services under one roof. The perils of not adapting are clear, with increasing numbers of single country administrators selling up, and law firms having to adapt to counter increasing competition from US law firms with a global presence.

DFI European Value-Add Fund is a new client to Langham Hall and a good example of the complexity advisors are now facing. The fund, managed by Langham Hall, completed its first deal, acquiring the London Olympia Exhibition Centre for £296 million as part of a consortium in early April. This transaction required a breadth of services not seen ten years ago and included administration, depositary, host AIFM, appointed representative, SPV accounting, domiciliation, and management reporting, all of which were provided in three different jurisdictions. The complexity does not stop with the set up, as coordinating the activities across the life of the transaction requires diligence and ruthless project management.

The next few years are unlikely to reduce the need for diversification and cross border regulatory planning, so the requirement for lawyers and administrators to execute these types of transaction is becoming increasingly important.

For more information regarding our AIFM services please contact:

Hanny Tirta
Head of AIFM Services
T: 020 3597 7907

Rob Short
Managing Partner
T: 020 3597 7900