IR - Central Bank Issues Final Share Class Guidance for closed-ended QIAIFs
On 2 February 2021, the Central Bank issued its final guidance permitting differentiated share classes in certain closed-ended Qualifying Investor Alternative Investment Funds (QIAIFs).
The guidance permits a fund to issue shares or other interests at a price other than net asset value without prior Central Bank approval; sets out the conditions applicable to the use of excuse provisions (which enable an investor to be excused from an investment that the fund proposes to make) and exclude provisions (which permits the fund to exclude an investor from a proposed investment that the fund proposes to make); permits new investors to acquire interests in the fund at a later stage in its life cycle (stage investing); and allows for the establishment of management or “carry” classes which permit portfolio managers of a fund to participate in investments of the fund, including on the basis of conditions which differentiate the class from other classes in the fund.