Alternative Investment Survey 2007 Results and analysis July PwC

Transcription

1 Alternative Investment Survey 007 Results and analysis July 007 PwC

2 Objectives and scope of the Survey In March 007, 8 interviews with product developers of international funds were conducted 85% European participants Objectives of the survey: To reveal the investors criteria and preferences for the choice of asset domiciles To discover their key priorities within the product development process

3 The participants asset classes Private Equity 7% Hedge Funds 8% Mainstream 9% Real Estate 6%

4 Investor location today and in the future Where are your investors located today? Where are your investors located in three years? Europe 68% Asia Pacific 6% Europe 58% Asia Pacific 0% Other % Middle East % America % Middle East 8% America %

5 Key factors for the choice of jurisdiction Real Estate Key factors for choosing a jurisdiction Today In the future Custodian requirements Listing capabilities Demand from sales force Other Service providers Relation with regulator Acquaintance with vehicle Scope of investment Costs Set up time to market Reputation of domicile Demand from investors Tax flexibility Demand from sales force is gaining influence Demand from investors and tax flexibility remain the most important criteria

6 Key factors for the choice of jurisdiction Hedge Funds Key factors for choosing a jurisdiction Today In the future Custodian requirements Listing capabilities Demand from sales force Set up time to market Other Demand from investors Service providers Relation with regulator Scope of investment Costs Tax flexibility Acquaintance with vehicle Reputation of domicile The importance of the set up time to market will increase in the future The quality of service providers and tax flexibility will remain key criteria

7 Key factors for the choice of jurisdiction Mainstream Key factors for choosing a jurisdiction Today In the future Custodian requirements Listing capabilities Other Relation with regulator Costs Scope of investment Service providers Demand from sales force Reputation of domicile Demand from investors Tax flexibility Acquaintance with vehicles Set up time to market The factor which will gain more importance is the relationship with the regulator Set up time and demand from investors will remain highly important

8 Improvements in the product development process - key priorities Rank Priorities within the product development process Develop knowledge of the characteristics of potential vehicles Improve competencies and knowledge of product development team Improve Market Watch Process Improve Knowledge Management 5 Increase use of external advisors 6 Change external advisors

9 Overview of European vehicles Overview of the most common European vehicles Real Estate Private Equity Hedge Funds Mainstream Germany Immobilien- Sondervermögen Spezial- Sondervermögen Unternehmensbeteiligungsgesellschaft (UBG): GmbH GmbH & Co KG Sondervermögen mit zusätzlichen Risiken Spezial-Sondervermögen Sondervermögen France SIIC OPCI (FPI, SPICAV) SCPI SCI FIP FCPR SCR FCPI Contractual OPCVM ARIA / ARIEL FCIMT FCP SICAV Jersey Limited Partnership Expert Fund Limited Partnership Expert Fund Unit Trust CIF UK Limited Partnership Limited Liability Partnership Unit Trust Venture Capital Trusts Limited Partnership Limited Liability Partnership N/A Unit Trust OEIC Ireland Limited Partnership Venture Capital Fund PIF / QIF Unit Trust ICVC CCF Luxembourg FCP Part II SICAV Part II SIF SOPARFI SICAF Part II SICAR SICAV Part II SIF SOPARFI FCP Part II Société Européenne FCP Part II SICAV Part II SIF SICAF Part II FCP Part I SICAV Part I SICAF Part I Source: PwC, 007

10 Overview of European vehicles Comparison of selected European vehicles DISTRIBUTION LICENSING Criteria Regulated vehicle? Pre-approval by regulator? Other than local GAAP? REGULATORY Investment restrictions? Investment in RE, PE, HF? Simplified prospectus regime? Subscription tax? Income tax? TAX Access to DTT? Withholding tax on dividends paid? (residents / non residents) Standard VAT rate? Listing possible? Maximum number of investors? Minimum investment amount? Minimum experience required? Service providers / persons subject to regulator's approval? SIF All / 5 % / Min. 5k Directors Custodian Auditor Irish QIF All / / % Min. 50k Promoter Investment manager UK L.P. RE, PE N/A ² 7.5 % 0 Manager (not mandatory) Jersey Expert fund RE, HF 0 % / Min. US$ 00k Promoter Investment manager French funds / RE, PE, HF / ³ / 9.6 % / / Custodian Prime broker Auditor German Spezial Sondervermögen ¹ / RE, HF N/A 9 % 0 Custodian ManCo ¹ for Hedge Fund ² Transparent ³ Depending on legal regime Source: PwC, 007

11 Competing new vehicles Ranking of product developers preferred vehicles Vehicles Participants asset class All categories Mainstream Private Equity Hedge Funds Real Estate Specialised Investment Fund (LUX) French Contractual Fund (FR) Qualified Investor Fund (IR) 5 Professional Investor Fund (IR) Retail Funds of Unregulated Funds (IR) 5

12 Contacts John Parkhouse, Partner Investment Management and Real Estate Practice Leader john.m.parkhouse@lu.pwc.com PricewaterhouseCoopers. All rights reserved. PricewaterhouseCoopers refers to the network of member firms of PricewaterhouseCoopers International Limited, each of which is a separate and independent legal entity. *connectedthinking is a trademark of PricewaterhouseCoopers LLP (US). PwC