FARAD Group, the Luxembourg-based B2B insurance and finance platform, has announced the recent launch by its management company SELECTRA, of its own RAIF platform called “Magnetica SICAV-RAIF”.
Since the enactment of the Reserved Alternative Investment Fund Law (the RAIF Law) in July 2016, FARAD Group has developed its proprietary RAIF Platform, Magnetica SICAV-RAIF, to provide investment managers with solutions for their AIFMD requirements.
Magnetica SICAV-RAIF is an “open architecture platform”, created to enable third parties to launch their own fully supported and administered Luxembourg RAIFs. Incorporated in October 2017, it is currently launching two sub-funds with €70 million of aggregate assets under management.
The platform is targeting investment professionals looking to launch their own fund under Luxembourg’s streamlined alternative investment funds regime. By dramatically reducing the cost of administration and the time taken to process transactions, it offers prospective managers a fast and highly cost effective ‘turnkey’ solution to kickstart their own fund. FARAD Group’s involvement does not end there, as it then provides an on-going & full hands-on support service including regulatory hosting and oversight, plus full marketing, distribution and investor relations management.
Marco Cipolla, Founding Partner at Selectra, explained the reasons behind the launch: “RAIF has enabled the achievement of a significantly enhanced time-to-market for new fund launches and presented a significant opportunity for managers setting up AIFs who wanted to avoid the double layer of regulation. Hence its immediate success.” He also added: “Launching a RAIF platform was the ideal opportunity for FARAD Group to meet the market while completing the range of our bespoke owned platforms which already included SIF, UCITS and Impact Investing. Our RAIF platform will thus offer fund managers the opportunity to focus on their core competencies of asset management and provide them with attractive risk-adjusted returns, enhanced diversification and an overall broader investment universe.”
Magnetica SICAV-RAIF employs top-tier service providers, thereby allowing managers to use an efficient route for launching an AIF in Europe. SELECTRA thus worked alongside Amicorp with the assistance of GSK Luxembourg for the legal structuring. ING will act as depository to the platform while KPMG will act as auditor of the fund.
