Beyond One-size-fits-all: PIM Capital’s Emerging Markets Edge

PIM Capital – PAN Finance’s Fund Structuring Partner of the Year, Mauritius and South Africa – is building a reputation as the go-to specialist for alternative investments and cross-border opportunities in Emerging Markets and beyond.

Emerging Markets operate by their own rules. They’re a different beast altogether – one that demands locally attuned, highly nuanced solutions. PIM Capital knows that success in these environments means going far beyond the “one-size-fits-all” approach often adopted by other global service providers.

Funds in distinct geographies and regulatory environments are often disappointed by services designed for completely different realities.

In this context, PIM Capital’s services really stand out. Until the recent past, services designed for fund structures in the Global North were perfectly acceptable in much of the world. Fund managers coped well enough but, as the market has grown and become more complex, fund managers have realised that the global cookie-cutter approach just won’t do any more.

From grey-listings to nuanced regulatory frameworks and currency volatility, PIM Capital specialises in structuring and administration of funds in varied and complex environments. The team’s expertise and the business structure talk directly to the nuances of operating in emerging economies. PIM Capital differentiates itself from larger, traditional fund administrators by offering flexible, pragmatic, client-focused structuring solutions, particularly for alternative investments and cross-border opportunities.

Effective structuring is a matter of make or break for a fund, even more so in more complex environments. Selecting the right structuring partner and thorough upfront planning are critical to avoiding costly mistakes and ensuring long-term success.

PIM Capital’s hands-on approach means it welcomes the sort of challenges that deter larger, long-established administrators. With multiple offices in Sub-Saharan Africa, Mauritius and Guernsey, PIM Capital has established itself as a leader in Sub-Saharan Africa and beyond.

In fund structuring and fund administration, the antiquated one-size-fits-all approach might still work in highly regulated environments, but not so much when you are looking at alternative sources of return. Recently, there has been a notable surge in interest among family offices and wealth managers for gaining exposure to alternative markets, including private debt and private equity.

There is a move to commoditising these assets and allowing access to your high-net-worth portfolios, not just ultra-high net worths. As access to these more complex markets opens, flexibility is required to allow effective, efficient access, particularly when the investments are located globally, including Emerging Markets.

The structures you set up and the way you design them for the jurisdictions in which you operate really matter. As a global business with experienced teams and networks in these alternative spaces, PIM Capital is well-positioned to help clients access these alternative sources of return efficiently. On-the-ground networks of advisers, lawyers and other professionals, combined with a nimble approach, allow the company to design tailored, cost-effective structures.

Flexibility is massively important. Rules and regulations often mean that an old-school administrator must reject an opportunity simply because it falls outside the traditional opportunity set.

The team at PIM Capital takes the time to understand each client Without the pressure of time sheets and commercial targets often faced by executives at competitors, PIM Capital is able to dedicate the right people and their time to “solutioneering”.

Generally speaking, fund administration is not as important as the original structuring. Having the right partner from the start, selecting the right jurisdiction, designing the right operational stack are critical.

PIM Capital adds a lot of value upfront. A big part of the work PIM Capital does is structuring the solution in such a way that the administration and operational design is optimised. On that basis, the administration fees are not just for administration services, they are fees for never having to worry about administration again by ensuring that funds are set up for long-term success with as much flexibility as possible.

The team at PIM Capital think like fund managers, not like administrators. Structures are designed to be flexible from the start because restructures are often a long, costly and arduous process.

Grey-listing – common in many Sub-Saharan African jurisdictions – is a prime example of the “special circumstances” faced in Emerging Markets. Where traditional administrators see a roadblock, PIM Capital sees opportunity, finding ways to mitigate risk and move forward.

If you want to access sources of return others can’t – or won’t – PIM Capital is the partner to make it happen, finding solutions to challenges that clients have been told were impossible. When a client says, “I was told we can’t do this”, it is almost like a red flag to a bull for the team at PIM Capital.

The company’s philosophy is to grow along with the funds it supports. If that means absorbing some of the initial costs, or reducing upfront fees so be it. True value lies in building a lasting, mutually beneficial partnership. PIM Capital is invested in the fund’s success for the long term, believing that shared growth yields far greater rewards than immediate margins. Sometimes these businesses are emerging, and PIM Capital helps them to incubate.

The bigger administrators are less able or willing to take a hit on set-up cost. At PIM Capital, obviously we want to make money, but we would rather make it over 5-10 years.

PIM Capital does not offer just niched services in far-flung markets. The team are experts in financial services in the Global North, too. PIM Capital’s global credentials are reinforced through its presence in Guernsey.

Over the past few years, PIM Capital’s client base has expanded from a portfolio of largely smaller, emerging businesses into a diverse one that includes large asset managers with global portfolios in multiples of billions of dollars alongside smaller, emerging private wealth firms. This evolution has sped up recently, which talks to PIM Capital’s ability to serve clients of all sizes, as well as a better understanding in the marketplace of PIM Capital’s value-add.

Fund managers are often frustrated by the service they are receiving. They are tired of hearing “We can’t/don’t do that”, but they are loathe to change administrators because it seems too onerous and expensive. So, they stay where they are, paying high rolling fees for underwhelming service. But, as Nelson Mandela said, “It always seems impossible until it’s done.” 

Leading PIM Capital’s Mauritius team, Christopher Erasmus (TEP) is a seasoned professional in fund and corporate structuring. He is trusted by high-net-worth individuals and corporations for his expertise in global markets, tax strategies and asset protection.