At Thompson Taraz we very much welcome the introduction of the new Reserved Investor Fund (RIF) structure in the UK, it is a significant milestone for the UK’s fund industry. The work by individuals and industry bodies to get us to this point is both commended and appreciated. Not only does the structure possess the features to enhance the appeal of the UK jurisdiction as a location for funds, but it also carries efficient and practical characteristics for launch and ongoing operation.

Some of the key benefits of the RIF structure are:

• Speed to market; the setup and formation of RIFs is designed to be lighter-touch and more accessible. This will enable fund sponsors to get their products to market in an expedited fashion when compared to other potential structures.
• Flexibility; the RIF can be either closed-ended or hybrid, which carries the benefit of increased flexibility with respect to investor exits and redemptions.
• Cost efficiency; when compared to competing structures that would potentially be used by fund sponsors, including those located in Jersey and Luxembourg, the RIF will have lower fund structuring and establishment costs.
• Investor accessibility; the RIF is designed to be accessible to Institutional and Professional investors, as well as the highest category of retail investors. In the case of retail investors, there is a £1 million minimum investor ticket requirement.
• Onshore; the RIF plugs a gap that has undeniably existed in the onshore UK fund structure offering, and as a result it presents fund sponsors with a practical, efficient, and commercially viable onshore structuring option.
• Tax benefits; a number of tax benefits are presented by the introduction of the RIF, with respect to Capital Gains and SDLT, a key leveller of this onshore structure with the currently widely used Channel Islands structures.

Not only are we enthusiastic about the RIF’s potential impact on the UK funds market, but at Thompson Taraz we possess the industry experience and necessary regulatory capabilities to support fund sponsors to setup and manage these new RIF structures. We have been working with real estate investment professionals since our inception over 35 years ago, and have been delivering AIFM, Depositary, and Administration capabilities to real estate funds and fund managers since the inception of AIFMD. Our subject matter and asset class experience positions us as the standout partner as sponsors look to establish RIF structures.

To discuss how we can assist you with the setup and operation of a RIF, please contact Philip Shearer for a discussion.