High Net Worth Investors may find Malta an ideal jurisdiction for the setting up of funds as legislation provides for a special class of collective investment schemes constituted in or operating from Malta catering for this type of investor – Professional Investor Funds (PIFs). Since PIFs are not intended for the general public they are not burdened with restrictions imposed on UCITS and other retail funds.
The Professional Investor Funds can be classified as an alternative investment fund. There are three forms of PIFs which target specific types of investor profiles:
- PIFs promoted to Experienced Investors
- PIFs promoted to Qualifying Investors
- PIFs promoted to Extraordinary Investors
PIFs benefit from the fact that the law provides for a higher degree of flexibility as well as more flexible investment restrictions. This is because the investors who are targeted to invest in PIFs have experience, expertise and knowledge to understand the investment decision.