US managers drive boom in demand for Irish funds

Ireland’s robust regulatory environment and well-established infrastructure make it the ideal home for funds across all asset classes including private capital. David O’Flaherty, Head of AIFM, Intertrust Ireland, and Jeffrey Drinkwater, Senior Director of Fund Sales, Intertrust US, explain more.

US asset managers and private equity specialists are increasingly looking at Ireland as a base for launching funds and products into Europe. The country’s well-regulated environment, skilled workforce and convenient language and time zone make it an ideal location for US fund managers.

Irish funds have boomed over the past decade. As of December 2021, total assets under administration stood at EUR6.6tn, of which EUR4tn were funds domiciled in Ireland. Compare this with year-end 2010, when approximately EUR1.9tn of assets were under administration in Dublin. There is no sign of demand slowing, as Ireland gains favour as a post-Brexit option for European launches and product distribution.

While US fund managers have been interested in Ireland for decades, the country’s vibrant economy is attracting new launches. US managers are comfortable with establishing structures in Ireland, with many large US funds already having a base there. This extraordinary growth has been nurtured by Ireland’s robust regulatory framework and government policy, which has evolved to ensure it continues to attract funds from around the world while also meeting the ever-increasing global regulatory requirements.

US fund managers gathering for the Irish Funds New York Seminar on 16 March and in Boston on 18 March, will find the Irish funds success story high on the agenda.

The introduction of the ILP boosts Irish funds

An example of this supportive regulatory environment is the new Investment Limited Partnership (ILP) – a structuring option for private funds that has gone from strength to strength since its launch in January last year.

Managers globally are using Ireland as the jurisdiction of choice to establish and market funds to European investors, with real estate, private equity and private capital increasingly popular.

The ILP makes Ireland even more competitive for private funds and for US and global managers looking to invest and raise capital in Europe and the EU.

Managers now have a greater choice across all different asset classes and can use Ireland to access European investors. The new legislation is proving popular with private equity-interested parties too.

ESG dominates investor discussions

A key topic for the Irish Funds New York Seminar will be environmental, social and governance (ESG) criteria. Institutional investors are demanding more information from private equity funds on their ESG credentials. A variety of frameworks are emerging to evaluate ESG, which is now essential, rather than optional, when addressing investors.

Another emerging trend is the creation of new fund management companies by managers leaving large asset managers to set up their own operations. As the ‘mega-funds’ get bigger, managers are choosing to establish their own ventures. This has led to more demand from start-up managers wanting to capitalise on the supportive environment for funds in Ireland.

These entrepreneurs are attracted by Ireland’s tax treaty network, well-established financial and services infrastructure, supportive regulatory environment, talented workforce and economic stability.

Intertrust Ireland’s funds team will be at the Irish Funds New York Seminar on 16 March to discuss these latest trends.

How Intertrust Group can help you invest in Ireland

As one of the fastest-growing economies in the eurozone, Ireland is a gateway to a European market of 500 million consumers. It’s also the world’s largest hedge fund administration and alternative investment fund centre.

Intertrust Group’s Dublin office has 140 employees and can tailor its services to the very specific needs of the global market looking to take advantage of this forward-looking jurisdiction. Our experts are recognised specialists in AIFM and can provide end-to-end solutions, fund administration, ancillary services and SPV structures.

We have the regulatory knowledge and expertise to manage any regulatory changes, assist with GDPR (General Data Protection Regulation) and SFDR (Sustainable Finance Disclosure Regulation) requirements and provide regulatory compliant solutions to both EU and non-EU managers. Our expertise spans all private capital asset classes including private equity, private debt, venture capital, real estate and infrastructure.

 Why Intertrust Group?

• Intertrust Group is a publicly listed company with 70 years’ experience providing world-class trust and corporate services to clients around the world.
• Intertrust Group provides a wide range of financial and administrative services to clients operating and investing in the international business environment. We help companies expand globally, offering support with restructuring, outsourcing and further developments.

Visit our website and get in touch for more information and talk to our expert team.