From private placement to AIFM distribution
The new way to sell alternative investment funds
After many intensive and controversial debates, the Alternative Investment Fund Managers Directive (AIFMD) finally became reality and entered into force on 21 July 2011. As one of the first member states, Luxembourg transposed the Directive into national law within the two year deadline in July 2013.
AIFMD provides the framework within the European market for the cross-border distribution of Alternative Investment Funds (AIFs). The key challenge is to understand the practicalities of how to comply with the Directive while continuing to raise capital.
In a nutshell, AIFMD regulates the access of Alternative Investment Fund Managers (AIFMs) to EU-domiciled investors. Contrary to the UCITS Directive, AIFMD does not regulate the product itself, i.e. the AIF, but the managers, the AIFM. Key objectives of AIFMD are to extend appropriate regulation and oversight to all alternative actors; to improve financial stability by monitoring systemic risk, to create a European market for alternative investments via passports for management and marketing activities and, perhaps most importantly, to increase transparency for the protection of the end investors.
REflexions issue 1 - April 2015
REflexions is a bi-annual digest, dedicated to the real estate investment management professionals, which brings you the latest articles, news and market developments from Deloitte’s professionals and clients.