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Case Study: Sankofa Investment Partners Limited

Case Study: Sankofa Investment Partners Limited

20 February, 2024
Guernsey Regulatory, Compliance & Legal Compliance Monitoring Regulatory Authorisation Support Compliance Consulting Funds Fund Administration Private Equity Listed Funds

End-to-end regulatory authorisation support.

The services in this case study were provided by Newgate Compliance and Aldgate Advisors Limited.

Who are Newgate Compliance?

Newgate Compliance (UK and the Channel Islands) are a compliance consultancy service delivering innovative, pragmatic compliance and regulatory solutions. Newgate have supported over 200+ wholesale clients obtain Financial Conduct Authority (FCA) direct authorisation by a team of many exregulators who can help navigate the technical minefield of financial modelling.

Who are Aldgate Advisors Limited?

Aldgate Advisors Limited is a sister company of Newgate Compliance staffed by the same team of ex-regulators. Aldgate’s regulatory licencing solution allows you to go to market quickly under their regulatory umbrella acting as a principal firm you can rely on.

Part 1: Becoming an Appointed Representation (AR)

The client challenge

In 2021, the founders of Sankofa Investment Partners Limited (Sankofa) embarked on setting up a Guernsey-based equity fund but faced the challenge of securing a swift and cost-effective method for fund management. The conventional route involved direct authorisation from the FCA, a process taking 6 to 9 months, demanding substantial resources and expertise. Moreover, managing investments as an AR was not feasible.

Aldgate’s solution

Aldgate, an FCA-regulated entity offering investment advice and promotion services, proved pivotal. The solution was for Sankofa to appoint a Guernsey-based fund manager. Sankofa was onboarded as an AR by Aldgate. Following FCA approval of the individuals, Sankofa was able to advise the Guernsey fund manager and attract potential investors into the fund in just 8 weeks. Aldgate carries out its essential monitoring obligations through its online portal (The Gateway).

Part 2: Transition to direct authorisation

The client challenge

Two years later, Sankofa sought full autonomy in managing their fund and separately managed accounts due to their successful track record.

Newgate’s solution

Newgate guided the founders through the intricate process of applying to the FCA as a Small, Authorised UK AIFM. This involved advising on permissions and structuring, compiling the requisite documentation, and handling the entire process, from submission to addressing FCA queries. Upon FCA approval, Sankofa now benefits from Newgate’s ongoing compliance support, ensuring regulatory adherence. This transition took 8 months, during which Sankofa continued as an AR of Aldgate, achieving their long-term goals.

Who are Sankofa Investment Partners Limited?

Sankofa is made up of an experienced team with a proven track record as successful investors in a diverse range of economic and stock market conditions over a prolonged period.

Sankofa operates an unconstrained stock-picking strategy with a strong focus on management, strategy and cash flow. The team look for fundamentally interesting companies at pivotal strategic turning points in their development, with a focus on small and medium-sized companies. With an ethos of acting as a ‘partner’ to their companies, Sankofa actively engages with management on both strategic and governance matters.

How can Newgate help? 

At Newgate Compliance, our team of experts deliver pragmatic and flexible solutions to help you meet what are often complex and evolving regulatory obligations.

Find out more about our regulatory authorisation and regulatory hosting services