Private Markets Firms Face Major Challenges in Opening and Maintaining Accounts

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Private Markets Firms Face Major Challenges in Opening and Maintaining Accounts

2025-05-20 15:59 Last Updated At：16:20

LONDON--(BUSINESS WIRE)--May 20, 2025--

A seemingly innocuous and run of the mill task, accounts and payments have become overly complicated, painful and time consuming for professionals operating in private markets. Today, Alpha Group International plc ( LON:ALPH) is launching a new guide for fund managers and service providers. The guide offers advice and direction on the various aspects involved in setting up, managing and maintaining accounts, as well as how to ensure payments are made successfully.

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An uptick in regulations coupled with increasingly complex dynamics between investors, service providers and banks has complicated opening accounts and making payments. Private capital fund managers are now having to tackle nuanced and time-consuming onboardings with account providers, with each having their own unique process.

Delays in setting up the account can impact investor confidence; LPs might start to question a GP’s ability to execute on a deal. At best, the fund manager has to clarify AML and KYC information. At worst, it could mean their deal deadline is missed, which could mean returning capital to investors.

If GPs haven't considered and planned for this level of complexity, it’s possible (and from our experience highly likely) that the lack of transaction activity, coupled with the heightened AML and KYC requirements, will render their account commercially unviable for their banking provider. When that happens, GPs can quickly find themselves in a situation where their account is being closed at short notice.

This comprehensive guide details the various aspects involved in setting up, managing and maintaining accounts, as well as how to ensure payments are made successfully. Alpha also explores the potential risks, downfalls and solutions, including:

Alpha provides the world’s first purpose-built global accounts solution for the alternative investment industry. Fund managers and service providers can quickly and easily access local accounts across key investment jurisdictions and manage them all in one place, with the proactive support of a dedicated team who understands the industry. The company is listed on the FTSE 250 of the London Stock Exchange and supports close to 2,000 investment managers with a range of alternative banking solutions.

James Yates, Managing Partner and CFO at IK Partners said, “Having often experienced delays and uncertainty when trying to open bank accounts for investment entities, we decided to trial Alpha’s accounts solution. Since then, we have opened multiple accounts and each time have found the process to be fast, straightforward, and reliable. Their high levels of client service and ongoing support have been very refreshing – they are highly attentive, responsive and have a clear understanding of our industry and the pressures that come with it.”

Request a copy of the guide

To find out more about Alpha’s global accounts solution, visit www.alphagroup.com/accounts or contact info@alphagroup.com

What to know about the protests now shaking Iran as tensions remain high over its nuclear program

DUBAI, United Arab Emirates (AP) — Widening protests in Iran sparked by the Islamic Republic's ailing economy are putting new pressure on its theocracy.

Tehran is still reeling from a 12-day war launched by Israel in June that saw the United States bomb nuclear sites in Iran. Economic pressure, which has intensified since September when the United Nations reimposed sanctions on the country over its atomic program, has put Iran's rial currency into a free fall, now trading at some 1.4 million to $1.

Meanwhile, Iran's self-described “Axis of Resistance” — a coalition of countries and militant groups backed by Tehran — has been decimated in the years since the start of the Israel-Hamas war in 2023.

A threat by U.S. President Donald Trump warning Iran that if Tehran “violently kills peaceful protesters” the U.S. “will come to their rescue," has taken on new meaning after American troops captured Venezuelan President Nicolás Maduro, a longtime ally of Tehran. Iran has installed a banner in Tehran warning the United States and Israel that their soldiers could be killed if they take military action there.

Here's what to know about the protests and the challenges facing Iran's government.

Demonstrations have reached over 170 locations in 25 of Iran’s 31 provinces, the U.S.-based Human Rights Activists News Agency reported early Sunday. The death toll had reached at least 15 killed, it added, with more than 580 arrests. The group, which relies on an activist network inside of Iran for its reporting, has been accurate in past unrest.

Understanding the scale of the protests has been difficult. Iranian state media has provided little information about the demonstrations. Online videos offer only brief, shaky glimpses of people in the streets or the sound of gunfire. Journalists in general in Iran also face limits on reporting such as requiring permission to travel around the country, as well as the threat of harassment or arrest by authorities.

But the protests do not appear to be stopping, even after Supreme Leader Ayatollah Ali Khamenei on Saturday said “rioters must be put in their place.”

The collapse of the rial has led to a widening economic crisis in Iran. Prices are up on meat, rice and other staples of the Iranian dinner table. The nation has been struggling with an annual inflation rate of some 40%.

In December, Iran introduced a new pricing tier for its nationally subsidized gasoline, raising the price of some of the world’s cheapest gas and further pressuring the population. Tehran may seek steeper price increases in the future, as the government now will review prices every three months.

The protests began first with merchants in Tehran before spreading. While initially focused on economic issues, the demonstrations soon saw protesters chanting anti-government statements as well. Anger has been simmering over the years, particularly after the 2022 death of 22-year-old Mahsa Amini in police custody that triggered nationwide demonstrations.

Iran's “Axis of Resistance," which grew in prominence in the years after the 2003 U.S.-led invasion and subsequent occupation of Iraq, is reeling.

Israel has crushed Hamas in the devastating war in the Gaza Strip. Hezbollah, the Shiite militant group in Lebanon, has seen its top leadership killed by Israel and has been struggling since. A lightning offensive in December 2024 overthrew Iran’s longtime stalwart ally and client in Syria, President Bashar Assad, after years of war there. Yemen's Iranian-backed Houthi rebels also have been pounded by Israeli and U.S. airstrikes.

Now Venezuelan ally Maduro is in U.S. custody. Iran’s Foreign Ministry has condemned the “illegal U.S. attack against Venezuela." U.S. Defense Secretary Pete Hegseth likened the attack to the U.S. strikes in Iran last year, saying that “Maduro had his chance, just like Iran had their chance.” He added that adversaries of the U.S. should “remain on notice” that “America can project our will anywhere, anytime.”

China meanwhile has remained a major buyer of Iranian crude oil, but hasn't provided overt military support. Neither has Russia, which has relied on Iranian drones in its war on Ukraine.

Iran has insisted for decades that its nuclear program is peaceful. However, its officials have increasingly threatened to pursue a nuclear weapon. Iran had been enriching uranium to near weapons-grade levels prior to the U.S. attack in June, making it the only country in the world without a nuclear weapons program to do so.

Tehran also increasingly cut back its cooperation with the International Atomic Energy Agency, the U.N.'s nuclear watchdog, as tensions increased over its nuclear program in recent years. The IAEA's director-general has warned Iran could build as many as 10 nuclear bombs, should it decide to weaponize its program.

U.S. intelligence agencies have assessed that Iran has yet to begin a weapons program, but has “undertaken activities that better position it to produce a nuclear device, if it chooses to do so.”

Iran recently said it was no longer enriching uranium at any site in the country, trying to signal to the West that it remains open to potential negotiations over its atomic program to ease sanctions. But there's been no significant talks in the months since the June war.

Iran decades ago was one of the United States’ top allies in the Mideast under Shah Mohammad Reza Pahlavi, who purchased American military weapons and allowed CIA technicians to run secret listening posts monitoring the neighboring Soviet Union. The CIA fomented a 1953 coup that cemented the shah’s rule.

But in January 1979, the shah, fatally ill with cancer, fled Iran as mass demonstrations swelled against his rule. Then came the Islamic Revolution led by Ayatollah Ruhollah Khomeini, which created Iran’s theocratic government.

Later that year, university students overran the U.S. Embassy in Tehran, seeking the shah’s extradition and sparking the 444-day hostage crisis that saw diplomatic relations between Iran and the U.S. severed.

During the Iran-Iraq war of the 1980s, the U.S. backed Saddam Hussein. During that conflict, the U.S. launched a one-day assault that crippled Iran at sea as part of the so-called “Tanker War,” and later shot down an Iranian commercial airliner that the U.S. military said it mistook for a warplane.

Iran and the U.S. have seesawed between enmity and grudging diplomacy in the years since, and relations peaked with the 2015 nuclear deal, which saw Iran greatly limit its program in exchange for the lifting of sanctions. But Trump unilaterally withdrew America from the accord in 2018, sparking tensions in the Mideast that intensified after Hamas' Oct. 7, 2023, attack on Israel.