Capricorn Launches Regulatory Hosting Solution In DIFC

London-based regulatory hosting provider Capricorn Fund Managers has launched the Dubai International Financial Centre’s (DIFC) first dedicated investment management regulatory hosting solution, Capricorn Fund Managers (DIFC) Limited (CFMD).^[1]

The new platform shall enable investment managers to operate under the regulatory umbrella of CFMD, which has been established as an Incorporated Cell Company (ICC) regulated by the Dubai Financial Services Authority (DFSA).  

The CFMD platform has been designed for both new and established investment managers across various strategies, including hedge funds, long-only funds, real estate, private equity, and venture capital.  

Previously, investment managers operating within the DIFC were required to obtain their own licenses from the DFSA. The launch of CFMD provides an alternative option, facilitating compliance and ensuring that each manager has the appropriate systems and controls in place.  

Currently, the DIFC is home to more than 400 wealth and asset management firms, which include over 60 hedge funds managing nearly US$700 billion in assets.  

CFMD is regulated by the DFSA to arrange deals in investments, advise on financial products, arrange custody, manage collective investment funds, manage assets, and arrange credit.  

 

In a statement, Craig Roberts, Senior Executive Officer at Capricorn, highlighted the advantages of Dubai’s fund market, noting significant interest from both managers and investors. "By launching our regulatory hosting solution, we add a new and efficient service for managers to set up and carry out regulated activities – all under our license," he stated.  

Salmaan Jaffery, Chief Business Development Officer at DIFC, expressed support for the new hosting solution, stating that it creates an additional pathway for managers to become licensed and operational in Dubai. “This is an exciting time for our fund management sector, which continues to go from strength to strength, and we have a long pipeline of managers looking at Dubai,” Jaffrey said. “A combination of our infrastructure, investors, strong regulatory regime, ambition, and lifestyle opportunities makes Dubai a highly attractive fund hub.” 

DIFC anticipates a record number of businesses to establish themselves in the Middle East's economic hub, drawing in major hedge fund players like Millennium Management and asset managers like State Street. In a May 2024 interview with Bloomberg, DFSA CEO Ian Johnston had said, "This year is going to be our busiest year ever."  

In July, the DIFC commenced construction on DIFC Square, a commercial development consisting of three interconnected buildings. This project aims to enhance DIFC’s real estate offerings by providing Grade A offices and retail units.  

DIFC Square, featuring three buildings with eight, 10, and 13 floors, is expected to be completed by the first quarter of 2026.