The important regulatory specificities of this investment vehicle need to be kept in mind when structuring and establishing those funds.
Preconditions of QIF Operation
A qualified investor fund is a regulated vehicle, with the following binding parameters applicable to it.
The key financial precondition is the value of the fund capital, which must reach at least €1.25 million within 1 year from the inception of the fund and continue to be so afterwards. For funds investing more than 90% of assets in the shareholdings of companies or intellectual rights, the minimum value of the fund capital is €1 million.
The value of one asset is no more than 35% of the fund’s asset value.
A qualified investor fund generally has at least 2 investors, with the upper limit not defined.
Licence to Operate
To serve as the fund manager, administrator, depositary and promoter needs a Czech National Bank’s licence.
Qualified investor funds are intended for investment by experienced private investors and professional institutional investors.
A private qualified investor means, in particular, a person who invests at least €125,000 and confirms that he/she is aware of the risks involved with investing in this type of fund. The investor can be a natural or legal person, Czech as well as foreign.
Institutional investors include, in particular, banks, securities brokers, insurers, pension funds, and others.
Securities issued by qualified investor funds can be offered to investors and traded publicly.
The process of establishing the investment fund differs between managed and self-managed funds. A fund managed by an investment company only requires an entry in the list maintained by the Czech National Bank whereas a self-managed fund requires a CNB’s licence.
Fund Managed by an Investment Company
Self-managed Fund with Administrator
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