PE information brief

On April 29, 2009 the European Commission submitted a proposal for a Directive on Alternative Investment Fund Managers (“AIFM”), aiming on creating a regulatory and supervisory framework for AIFM in the EU. Under the proposed Directive, European investment managers of non-UCITS investment funds would have to comply with a common set of rules in terms of licensing and supervision, and in return non-UCITS funds that they manage could benefit from a European passport for cross-border distribution to EU professional investors. The proposal has been sent to the European Parliament and European Council as it is still draft and subject to much debate. The Private Equity industry in general considers that the draft Directive does not take into account the specifics of the industry, and is, in several aspects, inappropriate to the alternative fund business. In this context, the EVCA has issued a response to the proposed AIFM Directive, pointing out areas that would need to be adapted in order to meet the requirements of the private equity and venture capital industry, as well as eliminating discriminatory provisions for private equity backed companies that put private equity funds in a competitive disadvantage to other investment entities.

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