Capital DeltaSystematic options
← Company roadmap

Section 05 / 12

Phased Roadmap

5. Phased Roadmap

Capital Delta's development is structured across five distinct phases, each with specific objectives, organizational requirements, and regulatory milestones. This phased approach allows us to build a solid foundation before scaling to a fully regulated asset manager.

Overview of Phases

Phase 0 – Track-Record Consolidation (Prop Trading) | 24-36 months

Establishing our track record as a proprietary trading firm, refining our strategies, and building our core technology infrastructure.

Phase 1 – Compliance Architecture & SOPs | 12-18 months

Developing the compliance framework, standard operating procedures, and governance structures necessary for regulatory approval.

Phase 2 – Regulated Manager Formation | 12-18 months

Obtaining initial regulatory licenses (SGEIC/SGIIC or Sub-Threshold AIFM) and establishing the legal entities required for fund management.

Phase 3 – Fund Launch & Seed Capital | 6-12 months

Launching our first investment fund, securing seed capital, and establishing relationships with service providers.

Phase 4 – Institutional Scale-Up to Full AIFM | 18-24 months

Scaling to a full-scope Alternative Investment Fund Manager (AIFM), expanding our investor base, and enhancing our institutional infrastructure.

Phase Details

Each phase is detailed below, covering:

  • Objectives & KPIs: Specific goals and key performance indicators for each phase
  • Organizational Structure: How our team and governance evolve through each phase
  • Management Team & Key Hires: Critical roles and recruitment priorities
  • Technology & Operations: Infrastructure development and operational improvements
  • Compliance & Regulatory Steps: Licensing requirements and compliance frameworks
  • Timeline & Budget: Expected duration and capital requirements

Current Status

We are currently in Phase 0, focused on building our proprietary trading track record and refining our core technology stack. Key milestones achieved to date:

  • Development of automated options trading framework
  • Implementation of risk management systems
  • Establishment of exchange connectivity to major venues
  • Initial performance metrics showing promising results ( see Traction & Proof Points)

Next Steps

Our immediate focus is on completing Phase 0 and preparing for the transition to Phase 1, which involves:

  1. Completing a 24-month audited track record
  2. Finalizing our core strategy suite
  3. Developing preliminary compliance documentation
  4. Engaging with regulatory consultants

Detailed Phase Descriptions

Phase 0: Track-Record Consolidation (Prop Trading)

Objectives & KPIs

  • Establish a minimum 24-month audited track record with Sharpe > 1.8
  • Develop and refine core trading strategies across multiple asset classes
  • Build and test the full technology stack for automated trading
  • Achieve consistent monthly returns with max drawdown < 15%

Organizational Structure

  • Lean structure with founders/partners overseeing all operations
  • Two main divisions: Trading & Research and Technology
  • External service providers for accounting, legal, and compliance

Management Team & Key Hires

  • Core team of founders operating the business
  • Engage consultants for specialized needs (legal, regulatory)
  • Begin identifying candidates for Phase 1 key hires

Technology & Operations

  • Develop and implement automated trading systems
  • Establish connectivity to major exchanges and venues
  • Build risk management and monitoring tools
  • Create backtesting and simulation environment

Compliance Considerations

  • Operate as a proprietary trading entity
  • Establish basic compliance framework and documentation
  • Begin research on regulatory requirements for future phases

Timeline & Budget

  • Duration: 24-36 months
  • Capital Requirements: $250,000 - $500,000
  • Key Milestones: Complete technology stack (Month 12), Audited track record (Month 24)

Phase 1: Compliance Architecture & SOPs

Objectives & KPIs

  • Develop comprehensive compliance framework and policies
  • Create standard operating procedures for all business functions
  • Prepare documentation for regulatory applications
  • Continue building track record with improved performance metrics

Organizational Structure

  • Expand structure to include dedicated compliance function
  • Formalize management committee and reporting lines
  • Implement governance controls and oversight mechanisms

Management Team & Key Hires

  • Hire Compliance Officer/Consultant
  • Recruit additional technology resources
  • Engage regulatory consultants and legal counsel

Technology & Operations

  • Implement compliance monitoring and reporting systems
  • Enhance risk management framework
  • Develop audit trails and record-keeping systems
  • Establish business continuity and disaster recovery procedures

Regulatory Milestones

  • Complete regulatory gap analysis
  • Prepare application materials for SGEIC/SGIIC license
  • Engage with regulators for preliminary discussions

Timeline & Budget

  • Duration: 12-18 months
  • Capital Requirements: $500,000 - $750,000
  • Key Milestones: Compliance framework (Month 6), Regulatory application preparation (Month 12)

Phase 2: Regulated Manager Formation

Objectives & KPIs

  • Obtain initial regulatory license (SGEIC/SGIIC or Sub-Threshold AIFM)
  • Establish legal entities for fund management
  • Develop fund documentation and marketing materials
  • Secure seed commitments for first fund

Organizational Structure

  • Implement regulated entity structure with appropriate controls
  • Establish board of directors with independent members
  • Form investment committee and risk committee

Management Team & Key Hires

  • Appoint regulated entity officers (CEO, CIO, etc.)
  • Hire Head of Research and Head of Trading Operations
  • Expand technology and operations team

Technology & Operations

  • Upgrade systems to meet regulatory requirements
  • Implement portfolio management and reporting systems
  • Establish connections with fund administrators and custodians

Legal & Compliance Steps

  • Complete regulatory licensing process
  • Draft fund documentation (PPM, LPA, etc.)
  • Establish compliance monitoring program

Timeline & Budget

  • Duration: 12-18 months
  • Capital Requirements: $1,000,000 - $1,500,000
  • Key Milestones: Regulatory approval (Month 12), Fund documentation (Month 15)

Phase 3: Fund Launch & Seed Capital

Objectives & KPIs

  • Launch first investment fund with minimum viable AUM
  • Establish relationships with service providers
  • Implement institutional-grade operational infrastructure
  • Begin marketing to qualified investors

Organizational Structure

  • Expand team to support fund operations
  • Implement full investment process and oversight
  • Establish investor relations function

Management Team & Key Hires

  • Hire COO or Head of Operations
  • Expand investment team with additional analysts
  • Add investor relations professional

Technology & Operations

  • Implement full-scale portfolio management system
  • Establish comprehensive reporting capabilities
  • Integrate with fund administrator and custodian systems

Fund Documentation & Service Providers

  • Finalize all fund documentation
  • Appoint fund administrator, custodian, and auditor
  • Establish prime broker relationships

Timeline & Budget

  • Duration: 6-12 months
  • Capital Requirements: $1,500,000 - $2,000,000
  • Key Milestones: Fund launch (Month 6), First closing (Month 9)

Phase 4: Institutional Scale-Up to Full AIFM

Objectives & KPIs

  • Upgrade to full-scope AIFM license
  • Expand AUM to €250+ million
  • Develop additional fund products
  • Establish global presence with multiple office locations

Organizational Structure

  • Implement full institutional structure
  • Expand board with additional independent directors
  • Establish regional teams for global operations

Management Team & Key Hires

  • Expand executive team with specialized roles
  • Add regional heads for international expansion
  • Build out full investment, technology, and operations teams

Technology & Operations

  • Implement enterprise-grade systems and infrastructure
  • Establish global trading capabilities
  • Develop proprietary analytics and research platforms

Compliance with AIFMD II

  • Upgrade compliance framework to meet full AIFMD requirements
  • Implement enhanced risk reporting and disclosures
  • Establish comprehensive ESG framework

Timeline & Budget

  • Duration: 18-24 months
  • Capital Requirements: $3,000,000 - $5,000,000
  • Key Milestones: AIFM approval (Month 12), €250M AUM (Month 24)