Deltamark is authorized by the Cyprus Securities and Exchange Commission with authorization number AIFM06/56/2013, as per the European Alternative Investments Fund Managers’ Directive (AIFMD) 2011/61/EU & its supplementing Directives.
By the virtue of its authorization scope Deltamark provides the following comprehensive Fund Management services:
- Portfolio Management (including oversight and responsibility regardless of any delegations)
- Formulation of portfolio statement
- Development of portfolio strategy
- Parameterizing of portfolio strategy
- Implementation of portfolio strategy
- Monitoring of portfolio Strategy
- Analysis and rebalancing of portfolio strategy
- Investment Committee formulation, representation and decision making
- Oversight and implementation of systems required to carry out investments
- Risk Management
- Implement effective risk management policies and procedures to identify, measure, manage and monitor on an ongoing basis all relevant risks
- Ensure that the risk profile of the AIF is consistent with risk limits set
- Monitor risk limits of portfolio of investments
- Report to AIFM’s governing body and senior management
- Confirm the adequacy of risk management systems
- Liquidity risk management including but not limited to matters regarding gates and partial redemptions and suspensions, temporary borrowings, side pockets, lock up periods and penalties, and notice periods (cut off dates ahead of dealing points)
- Management of leverage and exposures of the Fund
- Oversight of operational Risks in terms of minimum the below specifics
- Information technology risks
- Risk of key persons involved in the Fund’s operations
- Oversight of the investment reconciliation process performed by fund administrators and custodians
- Risks emanating from trading, settlement and valuation services
- Risk parameters disclosed to investors and regulatory authorities
- Compliance, Anti-Money Laundering, and regulatory oversight
- Ensuring sound remuneration practices are kept
- Ensuring service providers of the Fund are within regulatory limits and compliant at all times
- Conflict of interest monitoring and management
- Oversight of the Custodian’s duties and safekeeping requirements
- Oversight and ensuring funds are invested, reconciled, and ownership of funds are appropriate
- Oversight of the Fund administration and transfer agency functions
- Global distribution and ensuring sales is conducted within regulatory limits
- Management of complaints and investor relations where appropriate
- Reporting to regulatory authorities
Deltamark is authorized to manage the following Multi Asset Alternative Investment Strategies:
- Hedge Funds
- Fixed Income
- Private Equity
- Real Estate
- Other Alternative Classes
The above strategies cover a full spectrum of Alternative classes which can be catered to. In the event that your specific strategy/asset class is not mentioned above, we can have it incorporated.
Deltamark is equipped to manage the following types of Alternative Investment Funds (AIFs):
- AIFs: European Alternative Investment Funds
- RAIFs: Registered Alternative Investment Funds
- AIFLNP: Internally Managed Alternative Investment Funds
- SIFs/PIFs: Special or Private Investment Funds
- SICAVs: Open ended Collective Investment Scheme
As well as:
- Non-EU Collective Investment Schemes
- onshore/offshore Investment Funds & SPCs
- Any non-UCITS type Collective Investment Schemes
- Master and Feeder type of Funds feeding into EU or vice versa
- Migrating a Non-EU Fund to an EU domicile
- EU Fund that mirrors the performance of a Non-EU Fund
The appointment of an entity that has full regulatory responsibility for a Fund has been a common feature in the Authorised Funds industry for many years, but is a new concept for the majority of the Alternative Investment Funds industry.
The entity, which will be known as the AIFM, will oversee, among other things, the Investment Strategy, Risk Management, Fund Valuations, Regulatory Reporting and leverage policy of the Fund.
This is a favoured service by our clients and partners since Deltamark enjoys a singled out independent AIFM in the region.
We have, through our industry contacts, already been engaged as an Independent AIFM designate on a number of Funds with both vanilla listed security strategies and more complex alternative asset strategies.
Some of our engaged projects include:
- Hedge Fund Long Short
- Hedge Fund Macro Strategy
- Hedge Fund with Artificial Intelligence oriented sentimental analysis
- Private Equity Agricultural Sector
- Real Estate Commercial and Hospitality Sectors
- Multi Asset Strategic Regional Fund (First authorized AIF Fund in Cyprus)
We are currently involved in projects in over 12 countries across four continents.
Since the introduction of AIFMD, in Europe Funds requiring to attract EU investors need to be regulated and authorized to do so. For many small and medium-sized firms who don’t have the resources to sustain a huge back office operation, the regulations can seem onerous, burdensome and complex. The alternative is to explore an AIFM.
We often get requests by Fund Sponsors or initiators who are looking for an institutional quality product. They want to make sure they can pass institutional investor due diligence, and that the firm providing the regulatory and AIFM service has a strong reputation.
Our comparative advantage to the Fund Management Industry in the region is our network and a solid track record, and recommending investors and capital raising avenues to Funds we engage with and act as their contracted AIFM. Our network of distributors span from Eastern Mediterranean to Middle East, North Africa, CIS, Central Europe, Western Europe, and Asia pacific.
Beyond distribution networks and Fund platforms we are also provide access to top tier banks and financial counterparties willing to finance and/or invest in sizable and feasible projects. Sky is the limit to an appropriately structured and designed Fund project.
Deltamark often is requests as an AIFM to provide Delegated AIFM for one of the core Functions of a self-managed Fund (Portfolio-Investment Management or Risk Management).
For example the model allows the AIF / AIFLNP Self-managed Funds to delegate the risk management function to Deltamark which allows the Fund’s Board to demonstrate that the delegated function is hierarchically and functionally separate from the Fund’s portfolio management function, often achieving economies of scale and immense transfer of knowledge from the AIFM to the Board of the Fund.
This is also a favoured model because with the AIFM self-managed funds are able to easily transition their sub-threshold levels into the intended growing assets under management with the help of a professional AIFM.
This also allows Funds and their Board’s to access Deltamark’s sophisticated infrastructure, systems, processes, and network that have been developed over many years through years of utilized experience and investment.
New entrants to the Alternative investments Fund market such as Private Equity or Real Estate or even Hedge Fund sponsors or initiators wishing to start a Fund would need regulatory cover in order to Market and Manage the Fund. However, this usually means a significant investment in time and money up front without the certainty that the fundraising may be successful. Deltamark and its selected partners are equipped to provide regulatory cover for such instances.
Having been involved with a significant number of new start-ups in the Alternative Investments Fund sector over the last decade, our key observations show that new Managers or Fund entrepreneurs are unsurprisingly overwhelmed with understanding and obtaining the regulatory permissions they need to be able to run their business. Their task is made even more difficult by the ever changing regulatory environment and the costs entailed with the process.
This is where we sit in the mid of the market between the professional service provider and Fund initiators/sponsors to cater to this need.
Accordingly, we are often referred to act as the Alternative Investment Fund Manager (AIFM) or host AIFM. Typically, we act as the manager of the Fund and consider the investment recommendation and goals of the Fund sponsor in determining the portfolio and risk management for the Fund.
In some cases, Initiators act as Management Shareholder, General Partners, or advisors, or Board members and in some cases we hire them as our own staff dedicated to their Fund to assume track record credibility.
In all cases such scenarios undergo careful due diligence and compliance to ensure regulatory guidelines are met at all times.
Our economies of scale allows us to offer certain Fund requests within existing umbrella structures under our independent management. In all such cases, we act as independent External Managers to such Funds.
For example, a Fund requiring a compartment/supplement rather than a whole umbrella or standalone structure of its own due to timing restraints, and cost effectiveness.
In such cases, we retain a few umbrellas which are held by ourselves where clients can be hosted if environment suits their required strategy and targets.
Another example, is where start-up Fund initiators or sponsors are required to keep a low barrier to entry to penetrate the market at low total expense ratios to maximize profits and attract investors on high yield basis. Then, the hosting environment serves as an ideal choice.