Owning An Investment Fund
You have the opportunity is to become a partner of an investment fund based in Dubai International Financial Center (DIFC). The fund takes a global investment approach and leverages a wide set of asset classes, including equites, bonds, cash, and alternatives (private equity, real estate, hedge funds). The fund offers broad diversification and combines multiple investment approaches to control risk and adapt to changing market conditions.
We have the experience and skill to provide institutional grade fund management services. We have decades of successful experience managing billion-dollar portfolios for the largest institutions in the world. We apply the same approach that sovereign wealth funds, pension funds and other large institutional investors do.
Being a partner in a Dubai investment fund brings two kinds of benefits. The first is typical of ownership if any successful investment fund. A list of some of these benefits is listed below. But if you already have an existing activity anywhere in the world, there are other advantages to being a partner:
Own an Asset Management Business: You have the opportunity to become a partner in asset management company in a tax free and good regulatory environment. When properly operated, it is a highly profitable and valuable business.
Diversification 1. Diversify the safety of your wealth: In parallel to your current activities, you can use part of your assets to own and grow a completely separate, profitable, and legitimate business. This separate activity would be completely insulated from the rest.
Diversification 2. Diversify your source of income: We take a portfolio approach with well diversified investments across geographies and asset classes. Your returns would not depend on a single activity, region or investment. This will create a distinct source of income you can count on even if your other activities are not doing well.
Privacy & Confidentiality: DIFC does not disclose Ultimate Beneficial Owners (UBO) to the public and does not store UBO details in a central database, ensuring privacy and confidentiality.
Asset Protection: Dubai offers a good regulatory framework and privacy laws that shield people and companies from geopolitical issues and political, economic, or regulatory instability.
No taxes: The DIFC offers a 40-year guarantee of no taxes on corporate income and profits, supported by the UAE's extensive network of double taxation avoidance. There is also no income, dividend or capital gains tax.
Residency: If you wish, you can can have resident status in Dubai, with no obligation to live here. You can also opt for fiscal residency with all the benefits that this could entail.
Benefits of Ownership Of An Investment Fund
Ownership Stake: Partners typically have an ownership stake in the fund management company, which can offer long-term financial benefits and influence over the firm's strategic direction.
Profitability: Funds generate revenue through management fees charged to clients based on the assets under management (AUM). As the AUM grow, so do the revenues. Fund management is a highly profitable activity.
Access to Investment Opportunities: Investment funds offer access to a wide range of asset classes and markets that may be challenging for individual investors to access directly. This includes international markets, specialized sectors, and alternative investments. They can participate in larger deals and invest in asset classes/opportunities that may be difficult to access independently.
Access to Professional Asset Classes: Certain funds, like private equity and hedge funds, provide access to asset classes that are typically reserved for institutional investors.
Carried Interest: In many investment funds, partners are eligible for carried interest (or "carry"), which is a share of the fund's profits above a specified return threshold. Carry can be a significant source of income for partners. It comes in addition to management fees.
Fees: For traditional funds, there is usually a flat management fee. In the case of alternative investments like private equity and hedge funds, a fund manager can also charge a carry. For example, if a fund manager does 1 billion in private equity investments over time, and if the usual industry return performance standards are reached, the manager can make 300 to 400 millions, or 30 to 40%, just in fees.
Diversification: An investment fund offers diversification benefits. Partners' investments are spread across multiple portfolio companies or assets, reducing the risk associated with any single investment.
Liquidity: The Fund offers daily liquidity, allowing investors to buy or sell shares on any business day. This liquidity provides flexibility and ease of access to funds from anywhere in the world.
Cost Efficiency: The pooling of assets in investment funds can lead to cost efficiencies. Fund managers can negotiate lower transaction costs and benefit from economies of scale, potentially leading to lower costs, improved efficiency, and increased profitability.
Professional Management: Investment funds are managed by experienced and knowledgeable professionals who make investment decisions on behalf of investors. This expertise can potentially lead to better investment choices and returns.
Professional Research and Analysis: Fund managers conduct in-depth research and analysis of investment opportunities. This can save investors time and effort in evaluating individual securities.
Regulatory Oversight: Investment funds are subject to regulatory oversight and reporting requirements, providing all stakeholders with a level of protection and accountability.
Transparency: Funds are required to provide regular reports and updates to investors, enhancing transparency regarding holdings, performance, and fees.
Risk Management: Fund managers implement risk management strategies to protect investors' capital. They can adjust the fund's holdings in response to market conditions and emerging risks.
Alignment of Interests: Partners usually have their own capital invested in the fund alongside other partners and work hard to make the business successful. This aligns their interests with those other partners, ensuring that they are motivated to generate positive returns.
Professional Network: Partnership in an investment fund often means access to a vast professional network of fellow partners, industry experts, entrepreneurs, and potential co-investors. This network can provide valuable insights, connections, and opportunities.
Long-term growth: The asset management industry has historically demonstrated long-term growth due to the increasing demand for professional investment management services. As individuals and institutions seek to grow their wealth and achieve their financial goals, they often turn to asset managers for expertise and guidance.
Learning Opportunities: Being a partner in an investment fund provides ongoing learning opportunities in finance, business strategy, and investment analysis. This continuous learning can enhance one's professional skills and knowledge.
Prestige and Reputation: Partner status within a reputable fund can enhance an individual's professional reputation and open doors to additional professional opportunities.
Participation in Investment Strategy: If interested, the partner often can have a say in shaping the fund's investment strategy, allowing them to focus on sectors, geographies, or investment themes that align with their expertise and interests.
Active Involvement: If interested, the partners can play an active role in decision-making processes, including investment selection, due diligence, and portfolio management. This level of involvement allows them to have a direct impact on the fund's success.