The venture is described as the first regulatory incubation service to offer full coverage for both the Alternative Investment Fund Managers directive (AIFM directive) and the Markets in Financial Instruments Directive (Mifid).
Gandon has received its full AIFM licence from the Central Bank of Ireland, while Sturgeon can provide regulatory cover under MiFID. Under the new service, AIF managers will become appointed representatives of Sturgeon and thereby authorised to market their products within the European Union.
Sturgeon Ventures can help new or existing EU and non-EU AIFs become AIFM directive compliant in a number of ways, such as becoming an external AIF manager, setting up sub or mirror funds or outsourcing risk management.
An EU or non-EU asset manager can establish its own segregated sub-fund on one of a number of SICAV SIF platforms in Luxembourg, Dublin, Malta or Gibraltar.
Seonaid Mackenzie, managing partner Sturgeon said, “Sturgeon was the first regulatory incubator in the institutional space in the UK and we are leading the way once again by offering a full AIF service in Europe".
"The clock is ticking in relation to the AIFM directive and many self-managed or formerly lightly regulated investment managers will have to make tough decisions with regards to regulation, both under the AIFM directive and Mifid."
"Like ourselves, Gandon’s partners have all been fund and risk managers, which enhances the chemistry with our clients.”
The first fund to use the service as a regulatory umbrella is due to be launched in March.