Fund Finance In Ireland – Choosing The Appropriate Fund Structure

Once the appropriate investment fund vehicle is decided on (see our article here for further information), the investment fund will have to make a number of structural decisions.

An investment fund in Ireland is typically established as an umbrella fund – a fund which is divided into sub-funds with segregated liability. Each sub-fund will pursue its own unique investment strategy, have its own distinct liquidity profile and will constitute a separate pool of assets and liabilities. The sub-funds will though use largely the same service providers and offering documents. This will lower the costs involved in establishing and operating the sub-funds. Each sub-fund may have different share classes which, in the case of closed-ended funds, offers the possibility of: (a) allocating profit, loss and capital of certain assets to certain share classes only; (b) accommodating excuse or exclude investor requirements; and (c) creating management share classes. A sub-fund may