So-called “hedge fund lite” UCITS III products are all the rage but some industry figures have warned that not all of these vehicles, which are designed to be sold to retail investors, may not be as transparent and liquid as they might like to be, creating potential problems down the line.

The Laven Partners group is rolling out its service via its affiliate Laven Financial Services (Luxembourg).

“The UCITS III structure represents a seductive combination of transparency with unique access and distribution opportunities to the EU market. It has become particularly popular thanks to investors’ demands for liquidity and strong regulatory oversight,” Laven said in a statement.

The service will check to see if an investment strategy is suitable for a UCITS III vehicle, with tests of issues such as whether the assets held in a fund are eligible and the risks of any investment strategy.

Earlier this year, Merchant Capital, the UK stockbroking and corporate finance firm, launched its UCITS Strategy Assessment/Feasibility Evaluation, through which managers with funds with established track records can see if their strategies will translate efficiently into a UCITS structure. The new service is supported by Carne Global Financial Services and Kinetic Partners.