The asset management company, registered in the Czech Republic, in the form of the organization is most similar to the American hedge funds.
A hedge fund is an investment fund that is managed by professional investment managers. Hedge fund activities are often not regulated by government financial market regulators, but nevertheless, they are controlled by supervisors and regulators.
For example, US hedge funds are legally entitled to serve only qualified investors, with an initial contribution of at least $5 million for private investors and $25 million for institutional investors.
Compared to the US or other hedge funds, Management companies registered in the Czech Republic have 4 undeniable advantages:
Czech asset management companies and the funds they have created, as well as hedge funds of other countries, are intended only for qualified investors. However, Czech management companies have a lower minimum investment amount for qualified investors.
- In the US, the minimum amount is $5 million.
- In Malta and other countries most often the minimum amount is $1 million.
- In the European Union, the minimum amount is 125,000 euros.
- In the Czech Republic, the minimum amount is 40,000 euros. This circumstance greatly facilitates the attraction of investors.
There is a unique opportunity in the Czech Republic to create a management company and funds under its management provided as directors and founders of this company can be citizens of any country.There are no requirements for professional skills and education of managers of the management company
- there is no such possibility in any other country in Europe and the USA.
In other countries, there are rather high requirements for the management companies and funds authorized capital. There are no capital requirements for asset management companies in the Czech Republic. Share capital can be 1 EUR
Well, the most important advantage is the price and terms of registration - in the Czech Republic, the cost
of the Asset Management Company registration is one of the lowest in the world
and amounts to 25,000 euros. And the registration period is only 1 month.
Where else is this possible under such conditions?
At least these 4 circumstances make the Czech Republic a unique jurisdiction for registering its Asset Management Company and investment funds
, aimed at attracting investors from around the world. However, there are still a number of advantages.
The asset management company in the Czech Republic has a number of characteristics similar to hedge funds.
- A management company registered in the Czech Republic and funds created by it have the right to manage the assets of only qualified and institutional investors. We consider below, who is the qualified investors.
- Registering an asset management company in the Czech Republic will allow you to use a wide variety of investment strategies simultaneously. In fact, you can invest in any assets - land, real estate, stocks, derivatives, currencies, and cryptocurrency. Your investment strategies are unlimited. Investors' assets can be combined into funds without forming a legal entity on the basis of certain strategies as well as with hedge funds.
- The management company, similarly to hedge funds, can use financial leverage (credit leveraging to be correct).
- The structure of an assets and funds fees and commissions created by the company is similar to hedge funds registered in the United States. An asset management company registered in the Czech Republic may charge a fixed management fee and a commission on investor profits. Typically, the amount of commissions is 2% and 20% - 2% for asset management, 20% of the profits.