East Capital launches master-feeder structure

Stockholm headquartered manager East Capital is to launch a master-feeder structure to take advantage of opportunities it sees in Ucits IV legislation.

The manager, which specialises in emerging and frontier markets and has AUM of some €3.7bn in public and private equity and real estate, said that the structure will facilitate more efficient operations, but also boost its international distribution.

Investors in the manager’s Luxembourg Sicav funds will be able to invest in three new funds: the East Capital Baltic, Balkan and Turkey funds.

Albin Rosengren, partner and CEO of East Capital (pictured), said: “Europe is increasingly converging as a single market but greater regulation and reporting requirements risk increasing administration and legal costs. Due to recent measures introduced under Ucits IV fund managers can convert to a master-feeder structure and realise greater efficiencies in their operating models. This is good news for East Capital’s Sicav investors as they benefit from a broader fund offering and lower management fees.”

East Capital will also convert its existing five Swedish Ucits funds into into feeder funds, which will invest in the corresponding master funds, under the existing Luxembourg Sicav umbrella.The master funds are managed by East Capital’s Luxembourg management company East Capital Asset Management SA.

The changes are intended to take place on 1 October.



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