An AIF may be established in Ireland as a single standalone fund or as an umbrella fund comprising one or more sub-funds.
An AIF can currently take one of five legal forms: unit trust, investment company, common contractual fund (“CCF”), investment limited partnership (“ILP”) and Irish collective asset-management vehicle (“ICAV”). Each form of AIF may have open-ended, closed-ended or limited liquidity funds. A comparison of the different structures is set out in the table below.
|
Investment company
|
Unit
trust
|
CCF
|
ILP
|
ICAV
|
|
|---|---|---|---|---|---|
|
Structure
|
Variable capital investment company
incorporated as a public limited company.
|
A unit
trust constituted by a trust deed entered into between a management
company and a trustee.
|
An
unincorporated body constituted under contract by a deed of
constitution between a management company and a
depositary.
|
A
partnership between one or more general partners and one or more
limited partners constituted by a partnership
agreement.
|
An
Irish collective asset management vehicle incorporated under the
ICAV Act.
|
|
Single
standalone fund or umbrella fund
|
Yes
|
Yes
|
Yes
|
Yes
|
Yes
|
|
Separate legal personality
|
Yes
|
No
|
No
|
No
|
Yes
|
|
Board
responsible for management
|
Board
of directors of investment company
|
Board
of directors of management company
|
Board
of directors of management company
|
Board
of directors of general partner
|
Board
of directors of ICAV
|
|
Other
notable features
|
Unlike
the other structures opposite, an investment company is subject to
a statutory obligation to diversify risk.
|
Tax transparent; unitholders are treated for tax purposes as if they directly own a share of the underlying investments.
Investment in a CCFs is limited to institutional investors. |
Meets the U.S. “check the box” taxation rules.
An ICAV is not subject to many of the types of rules applicable to Irish public limited companies which apply to investment companies. |
This article contains a general summary of developments and is not a complete or definitive statement of the law. Specific legal advice should be obtained where appropriate.
