Hedge fund, real estate and other private markets managers looking to set up and carry out regulated activities in Dubai can now do so without their own license, instead operating on regulatory hosting provider Capricorn Fund Managers’ new platform.
Capricorn Fund Managers (DIFC) is the first dedicated investment management regulatory hosting solution in Dubai International Financial Centre, the London-based firm said in a news release Sept. 26. The platform, a so-called incorporated cell company, is regulated by the Dubai Financial Services Authority and allows hedge fund, long-only, real estate, private equity and venture capital managers to operate under its regulatory umbrella and run their strategies from the financial hub.
Capricorn said the platform is suitable for new and established managers, which, until now, have been required to obtain their own license from the regulator authority in Dubai. The news release said the platform adds a new option for managers to work closely with the DFSA and DIFC, while ensuring they are fully compliant, have the right systems and have the right controls in place.
Dubai and the Middle East in general have proven especially popular with money managers, including alternatives managers, as a location for new offices as they work with the region’s huge sovereign wealth funds and other asset owners. DIFC has more than 400 wealth and asset management firms registered, including more than 60 hedge funds, and assets managed are close to $700 billion, the release added.
The CFMD platform is regulated to arrange deals in investments, advise on financial products, arrange custody, manage collective investment trusts and assets, and arrange and advise on credit.
“From a commercial perspective, Dubai has become the fastest-growing fund market, with enormous interest from managers and individuals,” said Craig Roberts, senior executive officer at Capricorn, in the release. “By launching our regulatory hosting solution, we add a new and efficient service for managers to set up and carry out regulated activities — all under our license.”
The process to set up the new platform has proved “relatively straightforward,” according to Capricorn, since the DFSA’s regulatory approach is similar to that of the U.K. Financial Conduct Authority. Capricorn already has a U.K. hosting platform, providing services across portfolio management, risk oversight, operations, compliance and regulation.
“Through Capricorn’s hosting solution, we are adding a new route for managers to get licensed and operational in Dubai,” said Salmaan Jaffery, chief business development officer at DIFC, in the same release. “This is an exciting time for our fund management sector, which continues to go from strength to strength, and we have a long pipeline of managers looking at Dubai. A combination of our infrastructure, investors, strong regulatory regime, ambition and lifestyle opportunities makes Dubai a highly attractive fund hub.”
