aif
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Edelweiss Prime Brokerage Services provides an integrated suite of services for asset managers, including fund setup advisory, securities custody and clearing, fund accounting, research and execution services. The document describes Edelweiss' offerings for alternative investment funds, which include fund registration assistance, custodial services, research coverage of over 500 companies, and investor management services like drawdown tracking and statements. Edelweiss aims to be a one-stop-shop for asset managers seeking support across the lifecycle of their funds.
aif
- 1. Contact us at: prime.brokerage@edelweissfin.com | Tel: (022) 66233482/ 40635526 Edelweiss Financial Services, Edelweiss House, Off CST Road, Kalina, Mumbai 400098 | www.edelweissfin.com Your Gateway to Indian Capital Markets ALTERNATIVE INVESTMENT FUNDS Edelweiss Prime Brokerage Services
- 2. 2 OUR OFFERINGS Fund Setup Advisory India Access Research & Execution Services Fund Accounting Services Custody & Clearing Investor Management Edelweiss Prime Brokerage Services meets evolving needs of Asset Managers by offering an integrated suite of services across asset classes. From Fund Setup Advisory, Securities Custody & Clearing, Fund Accounting, Research & Execution Services to Back Office Support, we offer a plug and play model that suits the requirements of modern day Asset Managers. We build trusted, long term relationships with our clients by providing objective and strategic advice, as well as operational support to help them address their investment needs. EDELWEISS PRIME BROKERAGE SERVICES
- 3. 2 OUR OFFERINGS Fund Setup Advisory India Access Research & Execution Services Fund Accounting Services Custody & Clearing Investor Management Edelweiss Prime Brokerage Services meets evolving needs of Asset Managers by offering an integrated suite of services across asset classes. From Fund Setup Advisory, Securities Custody & Clearing, Fund Accounting, Research & Execution Services to Back Office Support, we offer a plug and play model that suits the requirements of modern day Asset Managers. We build trusted, long term relationships with our clients by providing objective and strategic advice, as well as operational support to help them address their investment needs. EDELWEISS PRIME BROKERAGE SERVICES
- 4. • Any fund established or incorporated in India • Privately pooled investment vehicle which collects funds from investors • Formed as a trust or a company or a LLP or a body corporate ALTERNATIVE INVESTMENT FUNDS (AIF) - INTRODUCTION AIF - CATEGORIES CATEGORY IDETAILS CATEGORY II CATEGORY III • Infrastructure fund • Social venture fund • Venture capital fund • SME fund Type of Funds • Funds which cannot be categorized as Category I AIFs or Category III AIFs • Private equity funds or debt funds • Funds which employ complex or diverse trading strategies and may employ leverage • AIFs such as hedge funds or funds which trade with a view to make short-term returns Unlisted, start-ups or units of other Category I AIFs Deployment of Funds Mainly in unlisted entities or units of AIF CAT I or II • Securities of listed or unlisted investee companies • Derivatives or complex or structured products • In units of other Category I or II AIFs Close endedType of Scheme Open or Close ended 3 years + max 2 years extension with approval of 2/3rd investors Tenure Close ended: 3 years + max 2 years extension with approval of 2/3rd investors Open ended: No tenure Maximum 25% in single investee companyInvestment Limits Maximum 10% in single investee company Diversification Provides investment diversification - can also invest in real estate, unlisted shares, derivatives and structured products Pooling of funds Enables an Investment Manager to privately pool the funds & provides better investment avenues Benefit of leveraging Leverage allowed under Category III AIF - which may generate higher returns as compared to other pooled investment options Higher returns & reduced cost Potential to provide higher returns by deploying complex or diverse strategies. Saves on the transaction cost as compared to investing through individual account ADVANTAGES OF AN AIF STRUCTURE
- 5. • Any fund established or incorporated in India • Privately pooled investment vehicle which collects funds from investors • Formed as a trust or a company or a LLP or a body corporate ALTERNATIVE INVESTMENT FUNDS (AIF) - INTRODUCTION AIF - CATEGORIES CATEGORY IDETAILS CATEGORY II CATEGORY III • Infrastructure fund • Social venture fund • Venture capital fund • SME fund Type of Funds • Funds which cannot be categorized as Category I AIFs or Category III AIFs • Private equity funds or debt funds • Funds which employ complex or diverse trading strategies and may employ leverage • AIFs such as hedge funds or funds which trade with a view to make short-term returns Unlisted, start-ups or units of other Category I AIFs Deployment of Funds Mainly in unlisted entities or units of AIF CAT I or II • Securities of listed or unlisted investee companies • Derivatives or complex or structured products • In units of other Category I or II AIFs Close endedType of Scheme Open or Close ended 3 years + max 2 years extension with approval of 2/3rd investors Tenure Close ended: 3 years + max 2 years extension with approval of 2/3rd investors Open ended: No tenure Maximum 25% in single investee companyInvestment Limits Maximum 10% in single investee company Diversification Provides investment diversification - can also invest in real estate, unlisted shares, derivatives and structured products Pooling of funds Enables an Investment Manager to privately pool the funds & provides better investment avenues Benefit of leveraging Leverage allowed under Category III AIF - which may generate higher returns as compared to other pooled investment options Higher returns & reduced cost Potential to provide higher returns by deploying complex or diverse strategies. Saves on the transaction cost as compared to investing through individual account ADVANTAGES OF AN AIF STRUCTURE
- 6. AIF • Private pooling vehicle • Incorporated as a Trust/ LLP/Company NAV based Minimum 3 years Not more than 1,000 investors INR 1 crore PARTICULAR Structure Valuation Criteria Min. Tenure Number of Investors Minimum Investment by Investors • Category I and II AIFs - close ended • Category III AIF can be both closed ended and open ended Fund Types Minimum corpus of INR 20 crores Minimum Corpus MUTUAL FUND NAV based No minimum tenure No such ceiling As mentioned in the offer document • Fund established to raise monies through sale of units to the public • Set up as a trust, which has sponsor, trustees, asset management company Closed ended or open ended funds There is no specific requirement No NAV calculation. Stocks are held in individual name of the investor No minimum tenure No such ceiling INR 25 lacs PORTFOLIO MANAGEMENT SERVICES Non – pooled; individual account structure PMS can be discretionary or non discretionary There is no specific requirement AIF vs PMS vs MUTUAL FUND Fund Management ELIGIBLE INVESTMENTS Investment manager Execute trust deed for fund set up SEBI shall on rececipt of the registration fee, grant AIF registration Appointment of the Trustee, Tax Consultant Legal & Custodian On receipt of SEBI approval, the applicant must pay registration fees Apply with SEBI for registration in form A & application fees to SEBI Execute Contribution Agreement SEBI shall approve the application & inform the applicant 1 2 3 4 5 678 GETTING REGISTERED (Indian, Foreign national & non resident) Minimum one crore per investor INVESTORS Cat I & II: Minimum of 2.5% of corpus or INR 5 crs Cat III: Minimum of 5% of corpus or INR 10 crs AIF STRUCTURE Trustee Custodian Minimum corpus INR 20 crs with max 1000 investors FUND SPONSOR Execute Investment Management Agreement
- 7. AIF • Private pooling vehicle • Incorporated as a Trust/ LLP/Company NAV based Minimum 3 years Not more than 1,000 investors INR 1 crore PARTICULAR Structure Valuation Criteria Min. Tenure Number of Investors Minimum Investment by Investors • Category I and II AIFs - close ended • Category III AIF can be both closed ended and open ended Fund Types Minimum corpus of INR 20 crores Minimum Corpus MUTUAL FUND NAV based No minimum tenure No such ceiling As mentioned in the offer document • Fund established to raise monies through sale of units to the public • Set up as a trust, which has sponsor, trustees, asset management company Closed ended or open ended funds There is no specific requirement No NAV calculation. Stocks are held in individual name of the investor No minimum tenure No such ceiling INR 25 lacs PORTFOLIO MANAGEMENT SERVICES Non – pooled; individual account structure PMS can be discretionary or non discretionary There is no specific requirement AIF vs PMS vs MUTUAL FUND Fund Management ELIGIBLE INVESTMENTS Investment manager Execute trust deed for fund set up SEBI shall on rececipt of the registration fee, grant AIF registration Appointment of the Trustee, Tax Consultant Legal & Custodian On receipt of SEBI approval, the applicant must pay registration fees Apply with SEBI for registration in form A & application fees to SEBI Execute Contribution Agreement SEBI shall approve the application & inform the applicant 1 2 3 4 5 678 GETTING REGISTERED (Indian, Foreign national & non resident) Minimum one crore per investor INVESTORS Cat I & II: Minimum of 2.5% of corpus or INR 5 crs Cat III: Minimum of 5% of corpus or INR 10 crs AIF STRUCUTRE Trustee Custodian Minimum corpus INR 20 crs with max 1000 investors FUND SPONSOR Execute Investment Management Agreement
- 8. HOW WE CAN HELP - ONE STOP SHOP One of the largest institutional research teams – 60+ professionals Covering 215+ companies across various sectors Soft coverage of more than 500+ companies SEBI Registered Custodian Offering tailor-made custody & asset servicing solution Trade settlement, electronic safekeeping of securities, trade processing CUSTODY & CLEARING SERVICES EXECUTION SERVICES Team of professionals to ensure efficient execution Large diversified client base – actively servicing 600+ client Strong technology backbone FUND SETUP ADVISORY End to end fund set up advisory Strong connect in ecosystem RESEARCH SERVICES FUND ACCOUNTING SERVICES Compliance reporting Capital gain calculation and reporting at fund level Calculation and reporting of daily NAV for the entire fund hierarchy INVESTOR MANAGEMENT Capture investor records including KYC details and commitment amount Drawdown tracking, notices and reminders Investor statement with holding and transaction details
- 9. HOW WE CAN HELP - ONE STOP SHOP One of the largest institutional research teams – 60+ professionals Covering 215+ companies across various sectors Soft coverage of more than 500+ companies SEBI Registered Custodian Offering tailor-made custody & asset servicing solution Trade settlement, electronic safekeeping of securities, trade processing CUSTODY & CLEARING SERVICES EXECUTION SERVICES Team of professionals to ensure efficient execution Large diversified client base – actively servicing 600+ client Strong technology backbone FUND SETUP ADVISORY End to end fund set up advisory Strong connect in ecosystem Compliance reporting Capital gain calculation and reporting at fund level Calculation and reporting of daily NAV for the entire fund hierarchy RESEARCH SERVICES FUND ACCOUNTING SERVICES INVESTOR MANAGEMENT Capture investor records including KYC details and commitment amount Drawdown tracking, notices and reminders Investor statement with holding and transaction details
- 10. The Edelweiss Group is one of India's leading diversified financial services company providing a broad range of financial products and services to a substantial and diversified client base that includes corporations, institutions and individuals. Edelweiss's products and services span multiple asset classes and consumer segments across domestic and global geographies. EDELWEISS GROUP: GROWTH THROUGH SYNERGISTIC DIVERSIFICATION Life Insurance DCM & Retail Finance Corporate Loans Institutional Equities Wealth Management Investment Banking Retail Asset Management ARC Alternative Assets Corporate Loans Retail Asset Management Alternative Assets Institutional Equities Investment Banking Institutional Equities Investment Banking Investment Banking 1996-2000 2000-2004 2004-2008 2008-2016 Agri Services FX & Rates Prime Brokerage
- 11. The Edelweiss Group is one of India's leading diversified financial services company providing a broad range of financial products and services to a substantial and diversified client base that includes corporations, institutions and individuals. Edelweiss's products and services span multiple asset classes and consumer segments across domestic and global geographies. EDELWEISS GROUP: GROWTH THROUGH SYNERGISTIC DIVERSIFICATION Life Insurance DCM & Retail Finance Corporate Loans Institutional Equities Wealth Management Investment Banking Retail Asset Management ARC Alternative Assets Corporate Loans Retail Asset Management Alternative Assets Institutional Equities Investment Banking Institutional Equities Investment Banking Investment Banking 1996-2000 2000-2004 2004-2008 2008-2016 Agri Services FX & Rates Prime Brokerage
- 12. Contact us at: prime.brokerage@edelweissfin.com | Tel: (022) 66233482/ 40635526 Edelweiss Financial Services, Edelweiss House, Off CST Road, Kalina, Mumbai 400098 | www.edelweissfin.com Your Gateway to Indian Capital Markets ALTERNATIVE INVESTMENT FUNDS Edelweiss Prime Brokerage Services