Investor Ownership, Classification & Liquidity:
Reporting for Alternative Investments under Alternative Investment Fund Managers Directive (AIFMD) requires the funds to report various investor-related questions;
All numbers about the investor ownership, classification or liquidity must be always represented or reported in terms of percentage (%) rounded off to the nearest number.
Top 5 investors’ aggregate percentage (or %) holding in the fund
While calculating the ownership of the top 5, entities of the same holding company will be grouped and taken into account and not at independent entity level.
Investments made by a financial firm’s different tranches will be treated as one.
Ownership by investor group type
The entire investor list will also be categorised based on the industry and sector, like Banks, Non-Financial Corporations, Insurance Companies, Pension Funds, Households and General Government.
Aggregate % of Professional clients
Professional investors are those who know the risks related to Alternative Investment investing and process the experience, knowledge and expertise in selecting their investments.
Firms which are into investing, legal entities, large corporate and Government undertakings fall under this category.
Aggregate % of Retail clients
Any investor who does not qualify as a professional investor is considered as “Retail Investor”.
Under the passport regime AIMFs’ authorized in the union can market their funds to “Professional Investors” in any member state; there is no passport for marketing it to “Retail Investors”.
Investor Redemption after the lock-in
Funds need to report the investor liquidity under different buckets; this is to have a check between the investor liquidity and portfolio liquidity balance.
Funds should always ensure they have sufficient liquidity to repay their investor redemptions, as and when requested by the investor after the initial lock-in period.
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