Professional Investor Funds

Governed by the Investment Services Rules in Malta, PIFs are mostly common for the setting up of Hedge Funds as well as for a number of different fund strategies involved into Private Equity, Real Estate and Venture Capital.

Advantages of PIFs

  • Flexibility – PIFs have minimal investment restrictions;

  • Costs - low;

  • Borrowing – up to 100% of NAV;

  • Self-managed – PIFs can opt to be self-managed by an Investment Committee;

  • Choice to appoint service providers – Custodian, manager or administrator are not mandatory.

Qualifying Investors' requirements

  • Invest a minimum of Eur100k or equivalent, which investment may not be reduced below such a minimum at any time by way of partial redemption;

  • Declare in writing that they are aware of and accept the risks associated with the proposed investment;

  • Satisfy, at least, one of the following:

  • A body corporate which has net assets in excess of Eur750k or which is part of a group which has net assets in excess of Eur750k or, in each case, the currency equivalent thereof;

  • An unincorporated body of persons or association which has net assets in excess of Eur750k or the currency equivalent;

  • A Trust where the net value of the Trust’s assets is in excess of Eur750k or the currency equivalent;

  • An individual whose net worth or joint net worth with that of a person’s spouse, exceeds Eur750k or the currency equivalent;

  • A senior employee or a director of a service provider to the fund.

 

PIFs are subject to private placements only and do not benefit from the passport rights within the EU/EEA as carried by the AIFs and UCITS.

Alternative Investment Fund Managers Directive ("AIFMD")

 

Fund managers and promoters may opt for a De Minimis hedge fund licence which is less onerous than the AIFMD.  For a self-managed hedge fund having its day-to-day portfolio management engaged within an investment committee as appointed by the Directors of the Fund, the AIF must have an AUM of less that Eur100 million – including assets held on leverage, or else have an unleveraged AUM of not more than Eur500 milion and a redemption gate to investors of not less than 5 years.

 

In applying the above criteria, the notional value of the assets must be considered.

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