The commitment of a new investor to subscribe a certain investment amount is a major achievement for the fund manager. This also applies if the commitment is only made by e‑mail, text message or handshake — as a rule, the fund manager should be able to rely on the added commitment. Legally, however, the process of accepting the investor — known as onboarding — is only just beginning. The qualification of an investor for the fund must be checked, due diligence obligations under money laundering law must be fulfilled and information must be collected from the investor that may have regulatory or tax implications for the fund.
If the fund manager can offer his investors an easy, contemporary onboarding process — compared to one that costs them a disproportionate amount of work — then onboarding has just as much of a competitive and therefore fundraising factor as a convincing pitch deck or PPM. While endeavoring to make the admission process as easy as possible for the investor, various legal regulations must also be observed. Adhering to all legal requirements — i.e. “compliance” — is no longer a job that would just end up in a drawer. Supervisory authorities and auditors monitor compliance with the requirements very closely, for example with regard to compliance with investor qualifications or money laundering obligations. Onboarding that facilitates the collection of complete and correct information and avoids errors right from the input stage therefore not only helps the investor, but at least as much the fund manager.
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