Luxembourg-based 6 Monks (6M) has become the first authorised alternative investment fund manager to provide specialised services to third-party funds interested in investment opportunities in private equity, Web3 and crypto-assets through regulated investment vehicles under the European passport scheme. This achievement, says the firm in a press release from 9 April 2024, positions 6M as a significant player in connecting traditional financial practices with the emerging Web3 ecosystem and crypto-assets market.

Julien Wolff, head of risk management at 6M, emphasised the company’s belief in the potential of crypto-assets as a new asset class, citing Luxembourg’s appeal as a destination for launching crypto funds due to its comprehensive financial infrastructure.

Regulatory changes, such as the markets in crypto-assets regulation (Mica), have played a crucial role in enabling 6M to meet the growing demand from fund promoters. These shifts have provided a framework for fund managers like 6M to operate within regulated vehicles, supporting Europe-wide distribution strategies aimed at professional investors, noted 6M in the press statement.

Initially obtaining the “registered AIFM” license in September 2021 from the Luxembourg Financial Sector Supervisory Commission (CSSF), 6M later achieved the full “authorised AIFM” license on 19 March 2024. This authorisation enables 6M to offer services encompassing portfolio management, fund administration and regulatory compliance.

6M informed Delano that Dair Capital is the first third-party fund promoter to entrust the management of its funds to 6M as an AIFM. Dair Capital plans to entrust three Luxembourg regulated funds to 6M, which are reserved for professional and institutional investors, with a total targeted size of about $500m.