Offshore is dead, an EU-passported feeder will unlock your fund
LPs are facing fines for using old methods of Reverse Solicitation when marketing Alternatives funds'. We alleviate that risk that by giving you the Regulatory pass to speak to LPs and distribute marketing material.
We automate the set up of the Feeder that will set your investor relations free from geographical constraints. You can keep track of capital calls, distributions, fees, NAVs and performance from one platform
GPs without borders
The EU is tightening its belt on foreign private markets funds, with members states adopting their own interpretation of the AIFMD challenging domestic funds too. We help you navigate through the labyrinth with our structure that lets you raise from any Member State, while feeding back into Master at home
Institutionalise your VC fund with an EU-passported Feeder fund. Professionalise your fund operations and grow your AUM. We handle the structuring and admin so you can focus on dealflow.
Private Equity Managers
Whether its LBOs, growth or secondaries, we help mid-sized PE funds structure and administer for less. Our investor relations suite lets you close your fund without regulatory risk and legal fees.
We set up your feeder structure and secure your EU-passport so you can start marketing your fund to LPs. You tell us where your Master is domiciled, so we can feed into it.
2. Build your profile
Set up your community profile complete with a track record and thesis to match. Don't go into sales mode right away… LPs want to see a holistic, contrarian worldview with an understanding of markets before getting into the details of your portfolio.
3. Close your Fund
Start building relationships with LPs and get them to subscribe to your fund. Combine them with existing LPs. Once you've got the backing, we handle the rest.
4. Onboard and Deploy
Call up your LP's capital into the best deals. Sit back, while we handle admin, reporting and distribution when there is a liquidity event.
$15B of LP firepower
We have an active community of EU family offices looking to deploy capital into market-beating venture funds. Once your feeder is set up, you can convey your worldview and strategies, while building long-lasting relationships with influential families looking to preserve generational wealth.
Automated Data Rooms
Plug and play with your portfolio data, which we automatically visualise to optimise for Family Office-friendliness. Build out your thesis and track record faster so you can passively convince LPs to converse.
Unlock your investor relations
Our intuitive profile format lets you show your team, track record and pedigree, with key metrics like IRR and TVPI sending the right signals to family offices. Our integrated IR infrastructure manages the entire transaction chain from subscription to deployment.
The Lean Private Fund
We take care of the entire chain, from Structuring to Capital Calls; Reporting to Distribution. The Modern Alternatives fund can stay lean for hard times, just like its portfolio companies. Leave the back office to us, so you can back the best companies.
Next Gen Fund Admin
Our team combines investment management and accounting veterans to take your fund ops to the next level. We help you visualise your data rooms to provide full visibility of assets under management, complete with KYC and a first-class reporting experience.
We help VC & PE funds achieve a level of operational sophistication that attracts LPs. We're not tech people circumventing the law, We're fintech specialists who understand the spirit of the law, working with the best fund lawyers, to help mid-sized funds play like Sequoia and Blackstone.
How will a feeder simplify my fund operations?
Using an EU-passported feeder can automate the LP management, reporting and fund admin, while slotting right into your master structure. The feeder operates as a standalone entity with a symbiotic relationship to your master, co-investing when capital calls are made. To do this through analogue methods would cost around $300,000 from a law firm. Finlight combines working with Luxembourg's best law firms with cutting-edge NLP to streamline the process so you can spend less billable hours managing this extension to your fund.
How can Finlight help our investor relations?
Having a passported feeder is a positive signal to LPs, showing operational sophistication that many GPs lack. In addition, once the structure is set up, our marketplace is set up for both passive and active marketing, so GPs can display their track record and convictions in a palatable way that saves LPs scrolling through PDFs and spreadsheets. Our built-in data visualisation tools lets GPs show their portfolio instantly on your dashboard, without using complex data visualisation tools like Tableau and PowerBI.
I'm an EU-regulated GP, why do I need an EU passport to market my fund?
This is due to the discrepancies between Member States in their interpretation of the AIFMD (The regulation that covers alternative investment fund marketing.) Without an EU-passport, you may be able to market in France, but not Germany, for example. The passport gives you the green light to raise across the Union without the regulatory risk from national regulators.
Why do I need an EU passport to market my fund to European LPs?
In the past, it was enough to hop on the Eurostar and use Reverse Solicitation to argue that the LP had courted you. Now the EU are clamping down on both LPs and GPs, handing out large fines if they do not have authorisation in the member state that they are raising from. You are permitted to send out "Pre Marketing" which would include a generic thesis, but if you raise within 18 months of distribution, this would constitute active marketing which you would require a passport for. For this reason, Family Offices are not even speaking to those reaching out, even if there is an intro, until the GP has authorisation. Finlight solves this by structuring a feeder with an EU wide passport, meaning you can speak to and send marketing material to an LP in any EU Member State,
What are the benefits of having EU LPs?
The EU is a prosperous region containing influential families with industrial-era generational wealth. Many tried to run their own VCs and PE firms in the fecundity of the Covid-tech boom, but are now looking to invest in funds with the dealflow, valuation discipline and operational knowhow to generate public-market beating returns. They are acutely aware of the outperformance of emerging managers, and they seek to use their vast networks to help portfolio companies expand in Europe. Finlight was founded by former Family Office principal who backed some of the 2010s' best performing emerging managers, giving us unique insight into the LP psyche.
Why do other Feeders pose a regulatory risk?
The other feeders on the market can only feed into the Cayman Islands. Since 2020, the EU has designated Cayman as a banned jurisdiction due to money laundering risk. LPs have responded by pulling away from other havens such as the BVI. Dohryo provides the flexibility to mature fund managers to feed into any other location including Delaware, the UK, and Singapore. In addition, there are no other feeders that embed the complex structuring that enables the EU-passport.
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Structuring, Marketing authorisation, Admin and Community in one place