A fast growing AIF market
In recent years, alternative investment funds have become an increasingly popular investment format. The funds often give investors the opportunity to invest in hard-to-access asset classes that are rarely available through regular funds. NGM offers investors a variety of AIFs to choose from.
What is an AIF?
An Alternative Investment Fund (AIF) is a collective investment undertaking which raises capital from a number of investors to invest it in accordance with an established investment policy for the benefit of the investors. In principle, an AIF functions as a regular fund, but has less stringent restrictions on what it may invest in, for example illiquid exposures such as direct investment in real estate or unlisted shares, and the fund can issue both interest-bearing instruments (debt) and shares (equity).
Why list an AIF?
On July 22, 2013, the AIFM directive entered into force and in Sweden the directive was implemented through the Act on Managers of Alternative Investment Funds. The law means that many companies that were not previously regulated are now considered to be subject to authorization requirements. Examples of companies that may be covered by the new rules are private equity funds and real estate funds. In order for an AIF manager to be able to market an AIF to retail investors in Sweden, a marketing authorization is required from the Swedish Financial Supervisory Authority. Such an authorization is issued only if the fund is admitted to trading on a regulated market, i.e. listed on the stock exchange.
How to list an AIF?
NGM offers a fast and cost-effective process for listing different types of instruments an AIF could conceivably issue, such as preference shares, bonds and debentures. This means, among other things, that neither exchange audit nor legal review is required, nor is there a requirement for the CEO to be employed by the company. The simplifications are made possible by the Swedish Financial Supervisory Authority itself conducting an assessment in connection with the AIFM's authorization application process. The less extensive listing process makes the listing significantly more cost-effective than a regular company listing.