There was widespread agreement that the DAOFI (Depositaries of Assets Other than Financial Instruments) licence is good for fund promoters as it broadens the range of market participants and improves choice. It enables Ireland to position itself as a leading private funds domicile for private equity funds by offering fund promoters the convenience of a one stop shop solution with a proportionate approach to the depositary function that reflects the range of asset classes in closed ended structures.

Fiona was asked to discuss opportunities that the DAOFI licence presents to non-bank administrators. She commented that the development of DAOFI coincides with a time in the market cycle when investors are searching for yield and a broader range of investment opportunities. DAOFI allows service providers such as Centaur the opportunity to service fund sponsors looking for agile service solutions outside of what are available from large custodian banks.

Fiona continued: “Experienced administrators such as Centaur, have developed a detailed understanding of fund operations including the inherent risks and the control environment necessary to operate a closed ended structure. Our global footprint means that we are accustomed to what is required to service a wide range of complex closed ended structures, in particular the enhanced accounting functions required to deal with complex allocations and income distributions. We also have a deep working knowledge of the range of reporting required by institutional investors like ILPA reporting and additional tax analysis.”

She said, “Besides the accounting piece, closed ended structures tend to require more bespoke corporate services. Rather than a standing quarterly board meeting where the fund’s performance is reviewed, we find that closed ended structures tend to require more ad hoc deal-based resolutions and a responsive approach to scheduling meetings geared towards dynamic deadlines.”

Fiona was joined by James O’Sullivan, Head of Funds Authorisation at the Central Bank of Ireland, David Williams, Partner and Head of Private Funds at Simmons & Simmons and James McKnight, Partner at Simmons & Simmons, together with key industry expert, Eamon Lyons, Client Solutions Director at Waystone. The webinar was hosted by Simmons & Simmons and you can listen to it here.

To hear more about Centaur’s Private Equity offering, please contact: