Can one have both mandates? (US /EU /UAE)
If I had to give a short answer, I would say:
* The US – YES (as long as you fall under the SEC exemptions)
* Europe – YES (depending on the type of investments of the Fund and the Fund size)
* MENA (UAE) – NO
In the first place, probably worth defining what are the roles and the differentiators of each of the two parties.
*** General Partner (GP) – the main entity responsible for the management and operation of a Fund.
Responsibilities:
– Decision Making
– Operational Management
– Fiduciary Duty
COMPENSATION: carried interest
*** Asset Manager – a firm or individual responsible for managing the investment assets.
Responsibilities:
– Portfolio Management
– Research & Analysis
– Risk Management
COMPENSATION: typically a % of AuM, or a performance-based fee
Key Differences:
Nature of Role: The GP is an integral part of the fund’s structure and has a direct stake in the fund’s success, while the asset manager is often an external entity hired to manage assets based on a specific mandate.
Scope: While both roles involve making investment decisions, the GP often has broader responsibilities, including operational aspects of the fund, whereas the asset manager focuses primarily on investment management.
