Alternative Fund Requirements:
■ In order to manage investment funds, a Fund Manager's License (FSA) issued by the Estonian Financial Supervisory Authority is required in most cases.
■ In addition, Estonia also allows the management of small alternative investment funds (AIFs), but this also requires a fund manager license (FIU) issued by the Estonian Financial Intelligence Unit.
Unlike the FSA license, the FIU license is less stringent for investment fund managers and is the best option for starting an investment business. In addition, small alternative investment funds (AIFs) may also attract private clients.
Process for registering and obtaining permission to set up a small alternative investment fund:
| Requirements | Register |
|---|
The amount of assets managed by the Fund may not exceed € 0.1 billion. | The process of registering a small alternative investment fund also includes registering the fund management company itself, which does not take more than five working days. Please note that you must have at least two board members at this stage. |
You need to create a group of two legal entities, the company's fund manager and the fund (registered as a limited partnership fund) itself, where the company's fund manager and limited partner are investors. | Authorization to register the fund is then obtained from the Estonian Financial Supervisory Authority. This process takes about 60 days. |
Small alternative investment funds may not offer shares in the fund publicly, but may solicit investors as long as such offers to buy part of the fund are only available to a maximum of 150 non-professional investors per EU country. The Fund may only make offers to purchase shares to professional investors. Each tranche of the Fund purchased by such investors must be worth at least EUR 100,000. | In addition to the authorization to register small alternative investment funds, an anti-money laundering (AML) license issued by the Financial Intelligence Unit must also be obtained, a process that also takes about 60 days. |
| The final step is to register a small alternative investment fund with the Commercial Registry, a process that takes up to five working days. |
Estonia Alternative Investment Fund Registration
Estonian Alternative Investment Fund
Alternative investment funds registered in Estonia may serve as the basis
■ Cryptocurrency Fund
■ Crowdfunding funds
■ Real Estate Fund
■ venture capital fund
Advantages of setting up a small alternative investment fund:
■ The best option for starting a business.
Although it cannot be sold publicly, it can attract retail investors.
■ The registration steps are simple.
The entire registration process for a small alternative investment fund takes only about two months.
■ greater opportunity
After registering and obtaining permission to set up a small alternative investment fund, you can confidently manage stocks, currencies, bonds, cryptocurrencies, real estate and other financial assets to generate more income in your portfolio.
In addition, you will be able to invest in venture capital, as small alternative investment funds can be easily adapted to specific projects, which in turn can be used as an effective way to absorb funds from multiple investors.
■ The right investment for everyone
Small alternative investment funds can be suitable for non-professional investors, even foreign citizens.
■ Confidentiality
Once you are authorized to set up and manage a small fund, the list of fund investors and the size of your investments are completely confidential.
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