Expanding institutional access through structured fund participation.

The securitisation of fund shares, particularly via feeder fund structures, provides a powerful link between fund managers and institutional investors. By converting fund shares into bankable, tradeable securities with their own ISIN, managers can distribute their strategies through alternative channels such as broker-dealers, private banks, and structured investment platforms. Any qualified investor from their bank account could now buy the fund through our securitisation process as easy as buying any security.

This approach enhances distribution reach, liquidity, and investor access, creating new pathways for capital formation and diversification.

Securitisation Process of Fund Shares

Feeder funds serve as flexible vehicles for structuring fund share securitisations across multiple investment strategies and asset classes. Typical configurations include:

• Fund-of-Funds Structures
• Structured Investment Vehicles (SIVs)
• Closed-End and Open-End Feeder Funds
• Exchange-Traded and Listed Feeder Funds
• Sector- or Region-Specific Feeder Funds
• Performance-Linked or Tax-Advantaged Feeder Funds
• Multi-Strategy Feeder Funds

Through FCS Capital’s securitisation platform, these feeder structures can be established rapidly and tailored to regulatory, geographic, or strategic requirements.

Key Features

• Alternative Distribution Channel: Access institutional investors via broker-dealers and private banks outside traditional fund distribution networks.
• Enhanced Access: Offer tailored, structured investment vehicles aligned with institutional preferences.
• Efficient Capital Deployment: Expand fundraising capacity and reach new investor segments.
• Portfolio Diversification: Provide investors exposure to a broader range of underlying funds and asset strategies.

Example Structure

1. Feeder Fund Setup: The fund manager establishes a feeder fund that securitises shares of an existing master fund.
2. Regulatory Compliance: The feeder structure is designed in accordance with relevant securities regulations and investor eligibility requirements.
3. Distribution: The securitised fund shares are placed through broker-dealers or private banks, targeting qualified and institutional investors.
4. Investor Participation: Institutional investors gain exposure to diversified fund strategies with enhanced liquidity and accessibility.

Future Outlook

• Market Growth: Fund share securitisation is driving increased institutional participation and secondary market liquidity.
• Innovation: Advances in feeder fund design are creating new structured investment solutions tailored to institutional demand.
• Regulatory Development: Evolving frameworks are supporting more flexible, investor-protective feeder fund structures.

Key Benefits of Fund Share Securitisation with MTCM

• Expanded Investor Base: Broaden reach to institutional investors through structured feeder vehicles.
• Improved Liquidity: Facilitate efficient trading and price discovery of fund-linked securities.
• Customized Investment Solutions: Tailor feeder funds to specific investor mandates and strategies.
• Streamlined Distribution: Utilize established banking and brokerage networks for faster, more efficient placement.

FCS Capital’s securitisation solutions empower fund managers to reach new markets and investors with customized, compliant, and scalable feeder fund structures — bridging traditional fund management with the flexibility of modern securitisation.

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