Crypto
Without a doubt, we are in the cryptocurrency revolution that will shape the world for the future but not everyone has figured it out yet. Even though cryptocurrency has seen a huge rise in popularity and also in the price there are still many countries that forbid it completely.
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Explanation In some jurisdictions, it is common industry practice for different classes of investors to acquire different types of securities, depending on their relative position in the transaction, the type and amount of risk they assume, and the relative value they bring to the investment. Returns for each type of
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Explanation Investments made by fund can be structured in many ways. In some cases, the fund may be a passive minority investor in a portfolio company, while in other cases, the fund may gain substantial or even complete control of the portfolio company. In deciding how to structure investments, consideration
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Explanation Any decision by a GP to make an investment involves an assessment of the opportunity and an evaluation of the risks compared to the benefits of the opportunity. The information on which this decision is based has usually been gathered and critically evaluated during the due diligence phase within
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Explanation A GP should be aware of the risks and opportunities that ESG factors bring to its portfolio companies. The success of an investment may be influenced not only by financial performance but also by other performance criteria. A GP must also take into account its own LPs' approaches
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Explanation The due diligence process that the GP conducts prior to investing in a portfolio company is critical. The information obtained during the process, together with GP's own knowledge and expertise, forms the basis for any investment decision. The due diligence process examines a broad range of aspects
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Explanation It is important that fundraising does not continue indefinitely as this may prevent GP from implementing the fund's investment strategy while continuing to commit resources to marketing. There may also be time constraints imposed by certain laws and regulations. Between the initial closing and the final closing,
Small Alternative Investment Fund (AIF) in Estonia Fund management is a regulated business. You can manage funds through an investment organization (regulated by the securities market law) or an investment fund (regulated by the Investment Funds Act). The legal environment in the Republic of Estonia provides the possibility of organizing
AML
The Republic of Marshall Islands has imposed Economic Substance Regulations. These new requirements have been imposed by EU and after accepting the mentioned requirements RMI has been white-listed by EU and largely complied by OECD.
Recommendations
Explanation The fundraising team can make forecasts of likely performance in the fund's chosen sectors, target IRR and money multiplier. However, it is very easy for such material to be misread or mislead potential LPs, particularly in light of changing circumstances or if material is presented selectively. Recommendation
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Explanation Prospective LPs will expect detailed track record information to be provided by GP as part of the due diligence process. It is an important part of acting with integrity that the track record accurately represents the past performance of GP and is both complete and accurate. It is possible
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Explanation The issue of responsible investment is of great importance to the industry. As society grapples with the sustainability agenda, the consideration and management of ESG opportunities and risks in the investment process is becoming increasingly important for both GPs and LPs to ensure the long-term performance of investments. In