Alternative investment fund in Estonia

An alternative investment fund is a collective investment fund. This fund pools the capital of specific investors and then invests the collected capital according to a predetermined investment strategy that is made for the benefit of the investors. Our experts can help you in obtaining permission to open an alternative fund.

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Requirements for the alternative fund:

In order to manage an investment fund, a fund manager’s licence (FSA), which is issued by the Estonian Financial Supervision Authority, is required in most cases.

In addition, Estonia also allows the management of small alternative investment funds (AIF), which also requires a fund manager’s licence (FIU) issued by the Estonian Financial Intelligence Unit.

Unlike the FSA licence, the FIU licence has less stringent requirements for investment fund management companies and is the best solution for starting an investment business. This can be characterised by the fact that a small alternative investment fund (AIF) has the possibility of attracting private clients as well.

The process of registering and obtaining permission to open a small alternative investment fund:

Requirements Registration

The amount of assets managed by the fund must not exceed € 100 million.

The process of registering a small alternative investment fund involves registering the fund management company itself, which takes no more than five working days. It is important to note that at this stage of registration, you must have at least two board members.

It is necessary to create a group of two legal entities, which include the Fund Manager of the company, and the fund itself, registered as a Limited Partnership Fund, in which both the Fund Manager of the company and a Limited Partner are investors.

This is followed by obtaining authorisation to register this fund from the Estonian Financial Supervision Authority. This process takes about 60 days.

The small alternative investment fund may not publicly offer shares of its fund, but it may solicit investors if this offer to buy part of the fund is made to a maximum of 150 persons per EU country who are not professional investors.
The fund may make offers to acquire shares only to professional investors.
These investors must purchase parts of the fund with a value of at least € 100,000 per one lot.

In addition to authorisation allowing registering of a small alternative investment fund, AML licence, issued by the Financial Intelligence Unit, which also takes about 60 days, must be obtained.

The last and final step is the registration of the small alternative investment fund itself with the Commercial Register, a process that takes only up to 5 working days.

Alternative investment fund registration in Estonia

Aif in Estonia

AIF registered in Estonia can become the basis for:
Cryptocurrency fund
Crowdfunding
Real estate fund
Venture fund

The advantages of setting up a small alternative investment fund:

The best option for starting a business.

This is characterised by the ability to attract retail clients in the absence of public offers.

Simple steps to register.

The whole process of registering a small alternative investment fund only takes about two months.

Greater opportunities

After registering and obtaining permission to open a small alternative investment fund, you can safely manage stocks, currencies, bonds, cryptocurrencies, real estate and other financial assets that will be included in your portfolio to generate more income.

In addition, you will also be able to invest in venture capital, as a small alternative investment fund can be easily adapted to specific projects, which in turn can be used as an effective way to pool capital from several investors.

Investments for everyone

Investors in small alternative investment funds can be non-professionals, who may also be citizens of a foreign country.

Confidentiality

When you are authorised to open and manage a small fund, all lists of both fund investors and the size of your investments will be completely confidential.

Do you want to open a small AIF in Estonia?

If you are interested in starting a small alternative investment fund that will make you a profit and free you from having to make all sorts of investment decisions, then feel free to contact us for help!

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