Capricorn Fund Managers (CFM) has officially launched its regulatory hosting solution in Dubai, becoming the first of its kind in the Dubai International Financial Centre (DIFC). This new platform allows investment managers to operate under Capricorn’s regulatory umbrella, streamlining the process of managing funds from Dubai.
A New Opportunity for Investment Managers
The platform, structured as an Incorporated Cell Company, provides a flexible and efficient solution for both new and established managers. It supports a wide range of investment strategies, including hedge funds, real estate, private equity, venture capital, and more. Prior to this, fund managers in DIFC were required to obtain individual licences from the Dubai Financial Services Authority (DFSA). However, with Capricorn’s hosting solution, managers can now work under Capricorn Fund Managers Dubai (CFMD) while remaining fully compliant with local regulations.
Regulatory Collaboration and Compliance
CFMD operates in close coordination with both the DFSA and DIFC, ensuring that all managers meet the required regulatory standards. This includes having robust systems and controls in place for compliance. With over 400 wealth and asset management firms operating within DIFC, including 60 hedge funds managing nearly $700 billion, the introduction of CFMD offers a highly attractive option for those looking to establish their operations in Dubai.
Commercial Growth and Strategic Advantage
Craig Roberts, Senior Executive Officer of CFMD, emphasised the commercial significance of Dubai’s rapidly growing fund market. “By launching our regulatory hosting solution, we offer a streamlined service for managers to set up and perform regulated activities under our licence,” said Roberts. He also highlighted the similarity between the DFSA’s regulatory approach and that of the UK’s Financial Conduct Authority (FCA), which made the process smoother for Capricorn, already established in the UK.
Benefits of Capricorn’s Hosting Solution
The regulatory hosting platform offers several key advantages for investment managers:
- Cost Efficiency: Managers can scale operations as their businesses grow, significantly reducing day-to-day expenses.
- Resource Efficiency: By handling regulatory, compliance, and risk oversight, Capricorn allows managers to concentrate on their investment strategies.
- Access to Expertise: Capricorn’s team provides support across risk, regulatory, and compliance needs, helping managers navigate an evolving regulatory landscape.
- Immediate Credibility: Managers hosted on the CFM platform benefit from Capricorn’s established credibility, which has already passed due diligence from major financial institutions.
A New Era for Dubai’s Fund Management Sector
Salmaan Jaffery, Chief Business Development Officer at DIFC, praised Capricorn’s hosting solution, noting its role in helping managers get licensed and operational in Dubai. He described Dubai as an increasingly attractive hub for fund management, thanks to its infrastructure, strong regulatory environment, and lifestyle opportunities. With a growing pipeline of managers showing interest, the platform is set to strengthen Dubai’s position as a leading financial hub.
