Experiences with liquidity provider onboarding and KYC requirements for new fund structures
We're setting up a new multi-strategy fund and running into some unexpected friction with LP onboarding, specifically around the depth of KYC/AML checks requested for the underlying beneficial owners and the fund structure itself. It seems more intense than what we've faced previously. Curious if others have noticed a recent tightening in these requirements from larger prime brokers or liquidity providers when bringing on newer, perhaps less established, fund structures. Is this the new normal, or are we just hitting a particularly cautious provider?
Also, any insights on navigating this efficiently without endless back-and-forth would be appreciated. Trying to avoid significant delays in getting these new lines active.
We've seen similar hurdles with new fund structures, particularly when there are multiple layers of beneficial ownership or non-standard domiciles. It seems like the scrutiny has definitely increased post-SVB and the heightened regulatory focus.