Players Fund - Execution of Warehousing Program Prior to Fund Launch
Players Fund, a venture capital fund set up to help athletes invest in high growth consumer-oriented tech companies, aimed to establish a series of SPVs to facilitate investment prior to their main fund's launch. Introduced by the EUVC Syndicate, Players Fund required a cost-effective and regulatory-compliant Special Purpose Vehicle (SPV) setup. Mara was brought on board to streamline this process and provide regulatory and commercial guidance.
Challenge
Players Fund faced several challenges in their initial setup:
Costly SPV Solutions: a significant amount of the team’s personal capital is being invested into the fund, thus having cost efficient structures was essential to maintain the pre-fund investment program.
The need for a flexible provider: each deal had different terms and included legal provisions to “roll” some of these deals into their main fund, so having SPVs with legal terms that were flexible to facilitate this was essential, as well as a provider that was dedicated to putting the time in to address each on a case by case basis.
Investor Onboarding and Compliance: The fund needed to accommodate a diverse investor base, many of a high-profile nature, requiring meticulous regulatory compliance and efficient onboarding processes.
Mara's Solution
Mara provided a comprehensive solution that addressed each of these challenges effectively:
SPV Structuring at Lower Costs: By offering SPV structuring services at more competitive rates, Mara enabled Players Fund to engage in direct deals without excessive overhead.
Regulatory and Domicile Guidance: Mara’s expert guidance was able to navigate the non-standard terms and practicalities that Players Fund sought for each deals, including some commercial guidance on some of the terms.
Tax considerations: some of the investments were made into US companies which poses tax complications for non-US investors, but Mara was able to facilitate the completion of the necessary tax documentation by investors and sharing with the end companies for the purpose of avoiding Withholding Tax.
Streamlined Investor Onboarding: Mara leveraged its digital platform to expedite the KYC process and regulatory questionnaires, ensuring that all investors, especially those from the U.S, were onboarded quickly and compliantly.
Process
Strategic Consultation: Initial consultations with Players Fund helped define the structure and scope of the SPV, ensuring it met both regulatory requirements and the team’s commercial strategy.
Investor Relations and Support: Continuous support was provided to Players Fund’s investors, handholding them through the onboarding process and answering any questions they had on the process. This was particularly helpful to the USA investors, who were less familiar with European KYC regulation.
Impact and
value proposition
Enhanced Accessibility for Investors: The use of Mara’s platform facilitated a smoother investor journey from sign-up to full participation in each deal, enhancing investor satisfaction and readiness for the main fund launch.
Regulatory Compliance and Market Insight: Mara’s expertise in handling complex investor profiles and providing regulatory guidance ensured that Players Fund was well-positioned to attract and manage investments from a diverse and high-profile investor base.
Conclusion
Enhanced Accessibility for Investors: The use of Mara’s platform facilitated a smoother investor journey from sign-up to full participation in each deal, enhancing investor satisfaction and readiness for the main fund launch. Regulatory Compliance and Market Insight: Mara's expertise in handling complex investor profiles and providing regulatory guidance ensured that Players Fund was well-positioned to attract and manage investments from a diverse and high-profile investor base.
