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Alternative Manager

Alternative Manager

 

Crossroads Capital Management Limited (CCM) is among a new wave of firms seeking to capitalise
on Ireland’s history in fund services, while moving into the front office and embracing its technology
ecosystem.

A Central Bank of Ireland authorised alternative investment fund manager, it was established in April 2014 to provide comprehensive alternative investment fund solutions to clients across the world.

“The Alternative Investment Fund Management Directive [AIFMD], married with the tax efficient Irish Collective Asset Management Vehicle [ICAV] legal structure, has created a significant opportunity for investment managers looking for a globally competitive and tax-efficient alternative fund that can approach qualified investors throughout the world,” says Managing Director and Chief Investment Officer at CCM, Joseph Harrigan.

“Clients are looking for innovative ways to take a trading strategy from concept to marketable alternative investment fund. CCM has the toolbox to refine the strategy, offer a cost effective and tax efficient Irish legal structure [ICAV]; manage all relationships with fund service providers, offer seamless integration with clients’ electronic trading platforms and offer capital introductions to grow the fund to a viable scale.

“CCM is distinctive from its competitors in that it will work with non-discretionary managers offering a full trading function with CCM itself, as well as providing a full distribution and capital introduction framework through its own or partner networks.”

The CCM team is drawn from both the investment management and service provider sides of the industry and the decision to establish and scale up from Ireland was because of the country’s long track record with back office fund services operations, says Harrigan.

“Ireland is a key player in the global funds industry and is home to nearly 6,000 funds comprising €2tr of assets under administration.

“It is a great location for servicing global funds because of the young and highly educated workforce, the easy accessibility of professional services firms with knowledge of and experience in the funds industry, the attractive corporate tax rates and Ireland’s membership of the EU.

“Currently, Ireland serves 45pc of the world’s hedge funds so we intend to capitalise further on that share and grow our investment management
capabilities to act as a gateway to Europe.”

Harrigan says that in general the Irish ecosystem for start-ups is favourable and the Government is quite supportive of businesses such as CCM. For example, Enterprise Ireland has provided matching capital funding to the business to allow it to scale up quickly.

However, improvement is always possible, he adds. “Ireland’s tax system still penalises Irish-resident entrepreneurs, executives and directors with globally uncompetitive marginal rates on personal income and capital gains.”

The strategy for CCM going forward is for it to have a dual offering of a platform for global managers to launch funds and raise capital in Europe and overseas while growing its own in-house portfolio management and fund products.

“To ensure our funds grow, we will focus on Big Data and showcase each fund’s performance across the major funds centres globally through a
portal. It is our depth of networks that will allow our funds a global reach.”

John Bohan, who is also currently managing director of the Apex Group of companies in Europe and the Middle East, founded CCM following the introduction of the AIFMD in July 2013.