Ballybunion Capital, a long established asset manager has set up a new alternative investment fund (Red Castle), authorised by the Central Bank and designed specifically for immigrant investors.
Alternative Investment Funds (‘AIF’) like Red Castle Fund which qualify for the Irish Government’s Immigrant Investor Programme (‘IIP’) are regulated and subject to supervision by the Irish Government’s Central Bank of Ireland (‘CBI’). The CBI is the Irish Government’s regulator of all financial services businesses including funds. Funds are also subject to supervision and oversight by government regulated 3rd party independent service providers including the Depository, Fund Administrator, Independent Valuer and Alternative Investment Fund Manager, all of whom are also regulated entities.
The CBI has issued a detailed set of rules contained in the AIF rulebook which govern the operation of funds like the Red Castle Fund. These rules detail how funds must operate, the oversight of the fund and its activity that the independent 3rd party service providers must undertake on a regular basis and the reporting the CBI requires each Fund and the independent 3rd party service providers to provide on an annual basis in relation to the fund and its activities.
Each Fund must appoint a Depository Bank which itself must be regulated by the CBI. The Depository’s role is to ensure the safe keeping of all the fund’s assets including cash and property. Red Castle Fund has appointed Societe Generale, one of the world’s largest banks as its Depository so it is Societe Generale who is responsible for the safe keeping of the fund’s assets.
Enterprise investments where an investor invests €1m in a business to avail of the IIP has none of the above protections and should therefore be seen as a riskier investments.
For details regarding how to apply and obtain Irish residency under the IIP, contact Gerard McGrath of this office.
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