Client needs in trusts, family offices, and fiduciary services are changing and Swiss firm Kendris is responding with a new subsidiary. Christian Lyk and Ioannis Gaiganis describe the solutions arising between Cyprus and Luxembourg in an interview.
Christian Lyk, Kendris has launched an «Institutional Clients» division, could you tell us more about the background to this?
The main reason is the way that customer needs are shifting, with a trend towards onshoring, and away from offshore structures for holding private assets.
There is consequently a need for many customers to apply a structure to their assets using a regulated vehicle, that we are more familiar with and which the regulators prefer.
This led us to launch the solution with Kendris Capital which, as an independent division with an institutional target group, will accordingly expand and enrich our services in the areas of trusts, family offices, and fiduciary and other business services, which we also provide in the areas of investment reporting and governance. This company is currently managed by my colleague Ioannis Gaiganis.
Ioannis Gaiganis, who or what is behind Kendris Capital?
Kendris Capital is an Alternative Investment Fund Manager, that is approved and supervised by the Cyprus Securities and Exchange Commission (CySEC). We are a joint venture of Kendris in Zurich and other partners, with Kendris holding the majority of the company. In addition, Kendris Capital has a fully owned subsidiary in Luxembourg that acts as an accredited economic advisor and we are establishing a Luxembourg branch of the AIFM.
As a licensed alternative fund manager, we offer the full spectrum of services to alternative investment funds not only for active and regulated asset managers but also for wealthy private clients, family offices and entrepreneurs who do not have a fund management license.
What are the benefits of using solutions based in Cyprus and Luxembourg?
With this setup, we can provide comprehensive support for the creation, management, administration and marketing of alternative investment funds to a broad range of initiators and advisers, as well as asset managers.
«There is a wide range of options, and we are driven primarily by the needs of our customers»
There is further potential synergy in the proximity to our subsidiary Kendris (Cyprus), which provides our full range of services including legal and tax consulting, accounting and also services in the regulatory area, such as CRS/Fatca or the upcoming MDR/DAC6 regulations locally and throughout the region, in collaboration with our headquarters here in Zurich.
The main advantages are definitely the flexibility and cost efficiency of AIFM solutions domiciled in Luxembourg and/or Cyprus in the EU zone.
What kind of investments are made with the funds?
Typically, we work with the categories of private equity, private debt, real estate, and listed equity. There is a wide range of options, and we are driven primarily by the needs of our customers.
Private equity, real estate and financial assets are typical asset classes, in particular when it comes to structuring their assets and, if necessary, also looking at inheritance and estate planning aspects.
What about Investments in cryptocurrencies?
We have already had some specific inquiries for this and are working on developing suitable solutions. In addition to the management of such funds, compliance and aspects related to the structuring and declaration of such investments from a fiduciary and tax perspective are among the topics for which client-specific solutions are developed.
Christian Lyk, do trust solutions still have any reason to exist in today’s world?
Absolutely, yes. In particular, but not only, in English-speaking countries, and when it comes to safely hand over family assets to current and future generations, or wherever the solution needs to fit the individual situation.
«For large families with many assets, family governance aspects also need to be covered»
With increasing transparency and automated exchange of information, as well as the trend towards nearshoring, we as an independent consulting firm can now expand our competence as a trusted advisor for private individuals, companies and institutional clients even further, through the addition of alternative investment funds.
For large families with many assets, family governance aspects also need to be covered, where trusts, foundations or funds can be used, or a suitable bespoke solution and a set of rules needs to be developed.
There is currently work also going on to develop a Swiss trust law here in Switzerland. I was a member of the working group, which worked on this topic. In the meantime, the consultation procedure on this proposal has been concluded, and the submissions are being analyzed.
Where is the trend in your industry heading, and what are wealthy families focusing on in 2022?
In recent years, there has been an increasing need for reporting, compliance and governance solutions, in which we actively support family offices and wealthy families as well as companies. Structuring, securing and declaring assets is an issue both during and after a pandemic. The onshoring mentioned above is another issue.
«I have great expectations of the new AIFM area»
This leads to the need for advice in the areas of taxes and law, and in the business customer sector for fiduciary assistance, in particular payroll.
However, relocation and due diligence projects will also continue to form a part of our daily business. I have great expectations of the new AIFM area with Kendris Capital, and right now, by offering bundled expertise, we seem to have captured the spirit of the times. The pipeline is already looking very good.
- More information about Kendris here
