Hermes GPE chooses Ipes as their depositary

Hermes GPE is one of the first UK fund managers to seek Financial Conduct Authority (FCA) approval under the Alternative Investment Fund Managers Directive and has chosen Ipes to act as their depositary.

Under the AIFMD, which came into force on 22 July 2013, UK private equity firms require a FCA-approved “passport” to market their funds in Europe. To achieve this, firms need to fulfil criteria including the appointment of an independent depositary.

Karen Sands from Hermes GPE says, “We felt Ipes was a good fit for us and our investment style. We wanted a depositary that understood private equity and Ipes provided that specialist approach. They also tailored their offering to our requirements so we complied with the AIFMD but they only provided us with the services we actually needed.”

“We wanted to make our information-sharing process as smooth as possible and work with a depositary whose technology facilitates electronic record keeping. Capital Tracker ticked those boxes and enables us to see the activity when it occurs,” Sands concludes.

Whilst UK firms can postpone the appointment of a depositary until 2014 under provisions negotiated by the Treasury some fund managers, and in particular those in the process of fundraising in Europe, are seeking to gain compliance early.

Justin Partington, Ipes' Commercial Director says, “We have seen a significant increase in interest in fund managers looking to achieve FCA approval and we want to work with each Manager to tailor our service to their needs.”

“As well as being appointed by Hermes GPE, we are also working with Doughty Hanson and Bridgepoint along with others who have their own in house administration.” Partington concludes.

Ipes is offering a full range of depositary functions for Other Assets as defined under the Directive. In consultation with a leading city law firm and a Big 4 consultancy it has prepared a detailed operating manual enabling it to operate a light touch depositary service with a specialist private equity focus.

A number of other key fund managers are currently working with Ipes to complete their depositary registration.