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The ICAV - New Irish Fund Vehicle Opens for Business
AUTHOR(S): Michael Jackson, Joe Beashel, Anne-Marie Bohan, Liam Collins, Dualta Counihan, Tara Doyle, Elizabeth Grace, Philip Lovegrove, Shay Lydon
PRACTICE AREA GROUP: Asset Management and Investment Funds
The new Irish corporate vehicle for establishing investment funds - the Irish Collective Asset-management Vehicle (ICAV) - came into full operation on 12 March 2015. The ICAV has been initiated in order to provide a more tailored, bespoke corporate solution designed to meet the needs of European investment funds and their investors, and is expected to become the vehicle of choice for UCITS and AIFs in Europe.
Commenting on the formal commencement of the ICAV legislation, the Minister of State at the Irish Department of Finance, Simon Harris TD, described this as a red-letter day, with the ICAV Act 2015 constituting one of the most significant developments for the Irish funds industry in many years.
Michael Jackson, Head of Matheson’s Asset Management and Investment Funds Group, said:
“As advocates for the ICAV from the outset, and having inputted significantly with respect to assisting with its progression, we at Matheson are particularly delighted to welcome the new vehicle. The priority accorded by the Irish Government to the legislation reflects their ongoing commitment to the Irish funds industry, and their expectation that it will continue to be a substantial contributor to the Irish economic landscape for many years.”
Structuring Your ICAV
Matheson has developed an extensive suite of ICAV briefing notes for our clients. These can be accessed online here, including a useful overview document summarising the key operational benefits of the ICAV and the efficiencies for funds and their investors here.
ICAV application forms have already been published by the Central Bank of Ireland. These relate to applications for the (i) registration of an ICAV; (ii) migration of an entity into Ireland as an ICAV; and (iii) conversion of an investment company to an ICAV. With respect to the latter, while existing Irish funds established as investment companies can continue as such post-introduction of the ICAV, UCITS and AIFs already established as investment companies have the option of converting to ICAV status. A Matheson guide to the steps involved can be accessed here.
For additional information and legal advice on structuring your ICAV, we would be delighted to speak with you.