Hedge Funds in Ireland

Ireland provides one of the most developed markets for the domiciliation of an investment fund. One of the ways through which foreign investors can activate on the Irish market is by registering a hedge fund. Those who want to start a hedge fund in Ireland can benefit from numerous advantages as the country registered 40% of the world’s hedge funds. In this sense, it is important to know that Ireland represents the first economy in the world for the domiciliation of such investment vehicles. Our Irish lawyers can provide an in-depth presentation on the investments legislation available for foreign investors. 

 

 

Generally speaking, a hedge fund refers to an alternative investment fund that is used by the investors to collect funds in order to carry out different investment strategies. Under the local legislation, the hedge funds are not included in a specific regulatory framework, as they are seen as alternative funds which use various investment schemes. 

 

The video presented below offers a short description on the Irish hedge funds: 

 

 

As mentioned above, 40% of the world’s hedge funds are set up in Ireland. At a European level, the Irish hedge funds market increases, as 63% of these funds are registered here. 

 

Further on, the investment vehicles registered as hedge funds can be set up as one of the following structures: 

 

• UCITS;

• Non-UCITS. 

 

The UCITS represents the acronym for undertakings for the collective investment in transferable securities. UCITS in Ireland are regulated under the Central Bank UCITS Regulations, which prescribe that these investment vehicles are to be registered as open-ended investment funds. Investors can find out more details on the open-ended structures from our lawyers in Ireland. 

 

 

The UCITS structure is a very flexible investment fund due to the fact that it is regulated by the same directives at the level of the European Union (EU). This means that once the fund was registered in one of the European jurisdictions, it will be able to conduct investment activities in an EU country, such as Ireland, without further authorization. 

 

However, those registering an UCITS vehicle in Ireland must receive an authorization from the Central Bank of Ireland, which is the main regulatory institution. 

 

Businessmen interested in further details on the hedge funds structures available in Ireland may contact our Irish law firm for legal advice.