The German Master-KVG model – Guide for foreign asset managers

This note provides an overview of the structure, legal framework and set-up of the so-called ‘Master-KVG model’ in Germany. In the past, there has been significant growth in the use of the Master-KVG model and this growth is likely to continue.

The Master-KVG model is the preferred investment platform for German institutional investors, predominantly insurance companies, that already have a German (special) fund in place. The Master-KVG model provides such investors with a useful instrument to elect the best or preferred asset managers for each of their asset classes.

Foreign asset managers frequently use the Master-KVG model to manage a German investment fund without establishing a German management company.

In this note we examine the structure of the Master-KVG model and provide answers to the most frequently asked questions.