Sub-Threshold AIF
Build the strategy.Give it room.
Some investments start with a defined asset. Others start with a strategy. Explore a fund framework for selecting and managing investments over time, within a clear investment mandate.
01 /A defined mandate.
02 /An evolving portfolio.
03 /A considered framework.
Start with the approach
Your next investment
isn’t the last.
Build around the strategy.
When your approach involves sourcing opportunities and making investment decisions over time, the structure needs to reflect that ongoing role.
The Sub-Threshold AIF approach is the alternative identified in Yooro’s platform for an actively managed portfolio. The investment mandate sets the direction before every underlying asset has been selected.
Start with how you intend to invest. Then work through the fund and management arrangements around it.
Compare the two approachesFrom strategy to structure
Clear decisions.
Before the first investment.
Bring the investment approach into the same conversation as the legal and operational detail.
- 01
Define the strategy.
Start with the investment mandate: asset classes, investment approach, intended investors and target markets.
- 02
Set the framework.
Work through the fund, manager, governance and service-provider arrangements appropriate to the mandate.
- 03
Plan the lifecycle.
Define how subscriptions, investment decisions, administration and reporting will work as the portfolio develops.
Understand the framework
Flexibility needs
clear boundaries.
The fund and its manager are distinct parts of the structure. Get the arrangements right for the strategy you want to pursue.
What “sub-threshold” refers to
The term refers to the manager’s applicable assets-under-management thresholds and conditions. In Luxembourg, the below-threshold regime is a registration regime for the AIFM, distinct from full authorisation.
The fund’s legal form, governance and operating arrangements still need to be established for the specific mandate.
CSSF: AIFM registrationThe investment mandate
Active portfolio selection takes place within the fund’s investment policy and governing terms. Asset classes, investment powers and investor participation belong in that framework.
Investors and distribution
A below-threshold registration does not itself provide an AIFMD marketing passport. The intended investor types and markets need to be assessed under the applicable distribution rules.
AIFMD: Article 3Custody and administration
A fund interest and an ISIN-bearing securitization note are different instruments. Discuss the intended holding arrangements, service providers and reporting requirements as part of the structure.
Choose the starting point
An asset to structure.
Or a strategy to build.
The investment approach comes first. These two structures answer different needs.
| 01 /Securitization SPV A defined opportunity. | 02 /Sub-Threshold AIF An evolving portfolio. | |
|---|---|---|
| Starting point | An identified asset, deal or existing fund. | An investment strategy with assets selected over time. |
| Portfolio approach | Wrap and hold the defined underlying investment. | Active selection within the fund’s investment mandate. |
| Investor participation | ISIN-bearing notes backed by the investment. | Participation in the fund under its governing terms. |
| Custody | Notes designed for participating banks and brokers. | Fund custody arrangements assessed separately. |
| Distribution | Professional investors, subject to the issuance requirements. | Assessed by investor type and target market. |
The structure follows the investment.
Explore Securitization SPVComparison of the structures outlined here. The vehicle, manager, investor eligibility, custody and distribution arrangements are determined for the specific mandate.
Let’s work through your case
Bring the mandate.
Start the conversation.
Tell us what you want to invest in, how you intend to make investment decisions and who the investors will be. Our team can discuss which structuring approach fits that starting point, and the arrangements that need to be established around it.
Discuss your strategyA conversation about your strategy and the framework around it.