We handled: Complete legal documentation for an alternative investment fund under Section 15 of the ZISIF Act, customized investment strategy setup, structuring of management fees and performance incentives, AML and GDPR compliance, investor suitability assessments, and corporate agenda including the incorporation of the limited liability company.
Duration: two months from inquiry to launch
Result: A fully functional investment vehicle enabling joint investment across a wide range of assets, a flexible fee structure that incentivizes the manager, and transparent sharing of risks and returns among all participants.
The client is a successful investor, and their acquaintances wanted to grow their capital alongside them. The client decided to explore their options, and our analysis identified an alternative investment fund under Section 15 of the ZISIF Act as the most suitable solution.
A contract-based fund that allows up to 20 non-qualified investors to invest together in virtually anything—real estate, stocks, or startups.
Every alternative fund is unique because we tailor it to the client's wishes while adhering to current legislation and market practices. For this client, we addressed:
Shared risk and return: All investors bear proportional risk based on the size of their investment and share in the returns according to the same key.
Management fee for the manager: The management fee covers the fund's basic costs. The manager is incentivized by a performance fee that is only triggered once pre-defined return targets are met.
Investment freedom: The fund can invest in any assets based on current market opportunities. Real estate, stocks, private equity—everything is possible depending on the manager's decisions and the investment strategy.
We prepared the complete legal framework for the fund within two months:
Corporate structure: Establishing an LLC to act as a fund manager with optimal capital structure and the necessary registration with the Czech National Bank.
Fund documentation: Investment strategy, investor agreements, fee schedule, and all AML, GDPR, and compliance materials.
Investor protection: Suitability tests for every investor, transparent risk disclosure, and clear rules for entering and exiting the fund.
Speed was essential, as the client already had specific investment opportunities and a list of interested participants. Our specialization in capital markets allowed us to prepare everything required without unnecessary delays.
Alternative investment fund managers are legally required to maintain a website with up-to-date information for investors. Although this was an unusual request, we were able to resolve it for our client thanks to our close professional contacts.
We secured a private section for investors and drafted content that explains what the fund is and how it operates. In this case, it is not permitted to promote returns or publicly offer investments in any way.
The client received a legally sound structure that allows them to share investment opportunities with up to 20 non-qualified investors.
The fund operates as an investment club with professional management, transparent reporting, and a fair distribution of risks and returns.
An alternative fund under Section 15 of the ZISIF Act proved to be the optimal solution for groups of private investors who want to invest together but do not require a traditional fund.
