Capricorn Launches First Institutional DIFC Regulatory Hosting Solution

Dubai, UAE; 26 September 2024: Capricorn Fund Managers (‘Capricorn’), the London-based regulatory hosting provider, has today announced the launch of Capricorn Fund Managers (DIFC) Limited (‘CFMD’), becoming DIFC’s first dedicated investment management regulatory hosting solution.  

Through the platform, which is established as an Incorporated Cell Company (‘ICC’) regulated by the Dubai Financial Services Authority (‘DFSA’), investment managers can operate under CFMD’s regulatory umbrella to run their funds from Dubai International Financial Centre (‘DIFC’). The platform is suitable for new and established investment managers across multiple strategies, including hedge funds, long only, real estate, private equity and venture capital. 

Until now, investment managers operating in DIFC have required their own licence from the DFSA. CFMD adds a new option working closely with the DFSA and DIFC ensuring that each manager is fully compliant, with the right systems and controls in place. Today, DIFC houses more than 400 wealth and asset management firms, including more than 60 hedge funds, managing close to USD 700bn.  

CFMD is incorporated in DIFC (Company Registration Number 9039) and is regulated by the DFSA for the provision of arranging deals in investments, advising on financial products, arranging custody, managing collective investment funds, managing assets and arranging credit and advising on credit.

“From a commercial perspective, Dubai has become the fastest-growing fund market, with enormous interest from managers and individuals,” said Craig Roberts, Senior Executive Officer. “By launching our regulatory hosting solution, we add a new and efficient service for managers to set up and carry out regulated activities – all under our licence.”

For Capricorn, the DFSA’s similar regulatory approach to the UK’s FCA is an important factor that has made this a relatively straightforward process. Capricorn’s UK platform is already well established, providing extensive experience and services across portfolio management and risk oversight, operations, compliance and regulation. 

Salmaan Jaffery, Chief Business Development Officer, DIFC, added: “Through Capricorn’s hosting solution, we are adding a new route for managers to get licensed and operational in Dubai. This is an exciting time for our fund management sector, which continues to go from strength to strength, and we have a long pipeline of managers looking at Dubai. A combination of our infrastructure, investors, strong regulatory regime, ambition and lifestyle opportunities makes Dubai a highly attractive fund hub.”

The advantage of taking the regulatory hosting route, includes:

1) Cost Efficiency - Enabling investment managers to opportunistically scale operations as their business develops, reduces the day-to-day operating costs significantly by being hosted on the CFMD platform.

2) Resource Efficient - By providing investment managers with expert investment and risk oversight, regulatory and compliance services, allows managers to focus on running their investment strategies.

3) Access to Expertise - Managers benefit from the support of the CFMD team covering all aspects of their risk, regulatory and compliance requirements. In the ever-changing regulatory landscape, CFMD can proactively support managers.

4) Immediate Credibility - CFM platform and processes have been through operational, risk and compliance due diligence from major institutions, providing hosted managers with immediate credibility in front of investors.