Jersey-headquartered Aztec Group has announced the launch of its Alternative Investment Fund Manager (AIFM) service in Luxembourg. This new service offers a range of support functions required by alternative investment managers establishing and managing European alternative investment funds. The services include marketing, compliance, risk management, regulatory reporting, and portfolio management.
Aztec received its AIFM license from Luxembourg’s financial regulator CSSF on April 8, according to the CSSF website. The firm, a large independent alternative fund administrator, handling over 600 billion euro in assets across jurisdictions including the Channel Islands, Ireland, the United States, and the United Kingdom, has been active in Luxembourg since 2007. More than 200 firms compete in the grand duchy’s AIFM market.
Partnering with a third-party specialist allows fund promoters to avoid setting up their own regulated manager, offering a more efficient route to accessing EU capital. The firm said its new AIFM service enhances its overall proposition, which currently includes fund and corporate services, depositary services, and various tax and regulatory services.
Paul Conroy, Aztec’s head of AIFM services, commented on the complexity and expense involved in setting up and operating a regulated AIFM. “We’re seeing more and more investment managers take the third-party AIFM route to market, leveraging the local presence and specialist expertise of an outsourcing partner,” he said in a statement.
The group administers more than 450 funds across various asset classes such as private equity, venture capital, private credit, real estate, fund of funds, and infrastructure.