Fund managers are increasingly looking for ways to facilitate investments alongside their main fund or, sometimes, as a separate investment. The Mainspring Investment Platform provides a flexible structure which allows one or many investors, whether from the UK or from other jurisdictions, to invest. The platform is tax transparent and there is no VAT charge. It can be established quickly and cheaply, has low ongoing administration costs and is simple to operate. All the reporting and administration is provided for the life of the investment and the fund manager remains fully in control.
Mainspring has developed its Investment Platform to give flexibility to fund managers and to allow them to deploy their investors’ funds fast and efficiently. The Mainspring Investment Platform can be used in a number of scenarios, such as for investors co-investing into a direct investment, as a feeder mechanism for groups of investors or to facilitate investments by the fund manager’s executives and staff. The Mainspring Investment Platform can also be used for investing in tax incentive funds or business property relief schemes. For example:
- Co-Investments: Using a limited partnership or other holding structure can be cumbersome and costly to set up, expensive to run and come with a significant administration burden. Mainspring’s Investment Platform can be used to enable an LP or a group of investors to co-invest alongside the main fund or independently into a company at any investment round.
- HNWI feeder: Bringing a large number of small investors into a main fund can be administratively difficult so the Investment Platform can be used to bring these investors together resulting in only one new LP (a Mainspring nominee company) in the main fund. By requiring each HNW investor to advance all of their subscription monies the manager can also have certainty that the required funds will be available.
- Staff deal by deal: The PE or VC executives and their staff often wish to co-invest in portfolio companies. Mainspring’s Investment Platform can be used to allow executives and/or staff to co-invest on a deal-by-deal basis alongside the main fund or separately.
Mainspring operates an FCA regulated private company custody service, which is well established with 60+ fund managers and over 40,000 investors and advisers on the platform. It has facilitated investment into many hundreds of portfolio companies on behalf of clients and wealth managers. Mainspring undertakes all the fund administration and accounting, including onboarding and AML checks, transaction and cash management. Full fund and investor reporting that can be made available to investors, advisers and the fund manager through a Mainspring client branded portal.
You can learn more about Mainspring’s Investment Platform here
If you are looking for a complementary, flexible and low cost fund structuring option, Mainspring has a solution.