Capricorn Fund Managers, based in London, has officially launched its first dedicated investment management regulatory hosting solution, Capricorn Fund Managers (DIFC) Limited (CFMD), at the Dubai International Financial Centre (DIFC). This new platform, structured as an Incorporated Cell Company (ICC) and regulated by the Dubai Financial Services Authority (DFSA), enables investment managers to operate their funds from DIFC under its regulatory framework.
This innovative solution is tailored for both emerging and established investment managers across various strategies, such as hedge funds, long-only investments, real estate, private equity, and venture capital. Previously, investment managers had to secure their own licenses from the DFSA to operate within DIFC. With CFMD, investment managers can now work closely with both the DFSA and DIFC to ensure full compliance with necessary regulations and controls. Currently, DIFC is home to over 400 wealth and asset management firms, including more than 60 hedge funds that collectively manage nearly $700 billion.
CFMD is registered in the DIFC (Company Registration Number 9039) and is authorized by the DFSA to facilitate a range of services, including arranging investment deals, providing financial product advice, managing collective investment funds, and advising 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. “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 licence.”
For Capricorn, the alignment of DFSA’s regulatory approach with that of the UK’s FCA has simplified the establishment process. The firm’s UK platform is already well-respected, offering extensive expertise in portfolio management, risk oversight, compliance, and regulation.
Salmaan Jaffery, Chief Business Development Officer at DIFC, noted, “Through Capricorn’s hosting solution, we are adding a new route for managers to get licensed and operational in Dubai. 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.”
Opting for the regulatory hosting route provides several advantages for investment managers, including:
- Cost Efficiency: This enables firms to scale their operations opportunistically while significantly lowering daily operating costs by utilizing the CFMD platform.
- Resource Efficiency: By offering expert investment and risk oversight along with regulatory and compliance services, investment managers can concentrate on executing their strategies.
- Access to Expertise: The CFMD team offers support across all aspects of risk, regulatory compliance, and oversight, allowing managers to navigate an ever-evolving regulatory landscape proactively.
- Immediate Credibility: The CFMD platform has undergone operational, risk, and compliance due diligence from major institutions, providing hosted managers with immediate credibility in front of investors.