I walk managers through the UK fund launch process regularly, and the same question comes up every time: what do I actually need to do, and what does the fund services team handle? The answer depends on the regulatory pathway, the fund structure, and where you are in the process. But the broad shape is the same for most emerging VC managers. FCA registration or authorisation, entity formation, documentation, investor onboarding, and first close — each step has a defined sequence, and getting them wrong costs you months [1][2].
This is how the process works end to end when you launch with a fund services provider like us.
Choosing your regulatory pathway
The first decision is whether you need full FCA authorisation, small authorised AIFM status, or can register as a small registered AIFM. For most first-time VC managers raising under EUR 500 million with no leverage, the small registered AIFM route is the right one. Registration fees fall into FCA pricing category 3, with an annual fee of GBP 781. Full authorisation costs substantially more and takes longer [1][5].
If you want the RVECA designation, you register as a small registered AIFM and confirm that at least 70% of aggregate capital contributions will go into qualifying investments. RVECA gives you a marketing label and some regulatory relief, but it locks you into a venture capital strategy. You also need EUR 50,000 in initial capital and can only accept professional clients or investors committing at least EUR 100,000 [3].
There is a third option: partnering with a host AIFM. This means an FCA-authorised entity takes regulatory responsibility for the fund while you act as investment adviser or general partner. It gets you to market faster than applying for your own authorisation — which can take 12 to 18 months for full-scope status — and lets you operate under an experienced firm's infrastructure while you build a track record [7].
We help managers evaluate which route fits their fund size, strategy, and timeline. For most sub-threshold VC funds, registration is faster and cheaper. For managers planning larger second funds, building toward full authorisation from day one sometimes makes more sense.
Setting up the management company and fund vehicle
You need two entities: a management company (the AIFM or GP entity) and the fund vehicle itself. The management company is typically a Ltd or LLP. An LLP can offer tax advantages through profit allocation, but the salaried member rules introduced in 2014 have narrowed those benefits for junior members significantly [19]. Most emerging managers we work with choose a Ltd for simplicity.
The fund vehicle is almost always a limited partnership — either an English LP or a Scottish LP. A Scottish LP has its own legal personality, which means it can hold assets in its own name and be admitted as a single entity into other fund structures. That makes it useful for feeder vehicles, co-invest vehicles, and carry structures [8]. For a straightforward single fund with UK and EU investors, an English LP is fine and slightly simpler to administer.
We handle the entity formation, Companies House filings, registered office setup, and initial governance documentation. The manager's job at this stage is to confirm the structure, sign the incorporation documents, and finalise the team that will appear on the FCA application.
The FCA application
The FCA assessment clock only starts when they consider your application complete. If anything is missing — unclear governance, incomplete business plans, gaps in fitness-and-propriety documentation for senior individuals — the clock does not start, and you lose weeks [2]. Recent FCA data shows new firm authorisations averaged 110 days when applications were submitted complete. But many cases take 12 months or more because of missing documentation or governance concerns [25].
For a small registered AIFM, the application requires a regulatory business plan, details about the fund and its strategy, identification of shareholders with 10% or more of voting rights, and materially complete marketing materials [1]. For RVECA registration, you also submit forms confirming the fund meets qualifying investment criteria [3].
We prepare the application package: the business plan, organisational charts, compliance arrangements, and draft marketing materials. We coordinate with your legal counsel on the regulatory narrative and make sure the application is complete before submission. Getting this right the first time is worth more than any shortcut.
Drafting the fund documents
Three documents matter most: the Limited Partnership Agreement, the Private Placement Memorandum, and the subscription documents. The LPA is the governing contract. It sets out partner rights, capital call mechanics, the distribution waterfall, management fees, carried interest, the fund term, and GP commitment. Most UK VC funds use a European-style waterfall — LPs get their capital back plus preferred return before the GP takes carry, typically 20% of profits [12].
The PPM is a disclosure document for prospective investors. It covers strategy, risks, fees, conflicts, track record, and regulatory matters. Institutional LPs expect it. The subscription documents formalise each investor's commitment and contain the representations and warranties confirming investor eligibility [45].
Legal counsel drafts these. We review and coordinate on the operational provisions — capital call procedures, NAV calculation methods, reporting schedules, and investor onboarding workflows — to make sure the documents match the fund administration setup we will run.
Appointing service providers
Beyond legal counsel, you need a fund administrator, an auditor, and potentially a depositary. Full-scope AIFMs must appoint an independent depositary. Sub-threshold managers are exempt, though some choose to appoint one anyway for investor confidence [11].
The fund administrator — that is us — handles fund accounting, NAV calculation, capital calls, distribution processing, investor reporting, regulatory filings, and coordination with the auditor [10]. We maintain the financial records, reconcile transactions, prepare the annual financial statements in compliance with UK GAAP or IFRS, and file AIFMD transparency reports on the required schedule [16][21].
We also manage the auditor relationship. The fund needs annual audited financials delivered to investors within six months of year-end. We prepare the working papers, coordinate the audit timeline, and handle queries. The manager's role is to select the auditor and approve the final statements.
Investor onboarding and KYC/AML
Every LP must go through KYC and AML checks before capital can be accepted. UK Money Laundering Regulations require identity verification, source-of-funds confirmation, beneficial ownership documentation for corporate investors, PEP screening, and sanctions checks [30]. For VC funds operating on a professional-client-only basis, you also need confirmation that each investor qualifies under MiFID II [3].
We run the entire onboarding process. Investors upload documents through a secure portal, we verify identities, screen against sanctions lists, and track completion status in real time. For straightforward individual investors, onboarding takes a few days. For complex corporate structures with layered ownership, it can take two to four weeks [42].
Industry data shows that 74% of Tier 1 asset managers have lost clients due to slow onboarding [42]. We use automated workflows to avoid that — pre-filling subscription documents with known investor data, triggering checklists by investor type and geography, and giving LPs a single portal where they can see exactly what is outstanding.
First close and capital deployment
First close typically happens 12 to 18 months after you start fundraising [14]. The prerequisites are: all legal documentation is finalised, you have hit a minimum commitment threshold (usually 10-20% of target), the GP entity is operational, fund administration is set up, and banking infrastructure is live [14].
At first close, we issue the initial capital call — usually around 10% of each LP's commitment. We verify funds arrive on time, reconcile bank statements against each LP's contribution, and follow up on shortfalls according to the LPA's default provisions. After first close, the fund remains open for subsequent closes, typically over 18 to 36 months. LPs joining later pay equalisation interest — usually 8-12% annualised — to compensate first-close investors for the time-value difference [14].
We handle the capital call mechanics, equalisation calculations, and distribution processing for every close throughout the fund's life.
Ongoing compliance and reporting
Once the fund is live, the reporting obligations continue for its entire term. Small registered AIFMs report to the FCA annually. Full-scope AIFMs report quarterly. The transparency reports cover AUM, leverage, risk profile, and other prescribed metrics, submitted through RegData [16][21].
We prepare and file these reports. We also produce quarterly NAV reports for investors, annual audited financial statements, and capital account statements showing each LP's position. The manager focuses on portfolio management and investor relations. We handle the back office.
AML compliance does not end at onboarding either. We run ongoing transaction monitoring, periodic KYC refreshes, and sanctions rescreening throughout the fund's life [30].
What we handle at Infra One
When a manager launches a UK fund with us, this is the division of labour. We handle entity formation and Companies House filings. We prepare the FCA application package and coordinate with your legal counsel. We set up the fund administration platform — accounting, NAV, capital calls, distributions, reporting. We run investor onboarding end to end: KYC/AML, subscription processing, portal access. We file all regulatory reports to the FCA. We coordinate annual audits. We manage ongoing compliance monitoring and threshold tracking.
The manager's job is to define the investment strategy, raise capital, make investment decisions, and manage the portfolio. Everything else — the operational and regulatory infrastructure — is what our fund platform is built for.
If you are planning a UK fund launch and want to understand what the timeline and process look like for your specific situation, get in touch.
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