Risk management within AIFMD


Risk management within AIFMD for private equity and real estate funds

While compliance gaps for AIFM already in line with UCITS regulations have proved to be limited, compliance may be more challenging for pure alternative players such as private equity, infrastructure and real estate managers, for which most of the AIFMD requirements, are completely new.

Executive summary

Among the challenges faced, risk management requirements for private equity and real estate raise many questions and concerns within the industry, along with regulatory reporting, which is characterised by risk metrics and risk-related data. Identifying and
implementing appropriate risk measurement techniques and procedures for those very specific asset classes is likely to represent a challenge for risk managers, on top of the organisational and independence requirements relating to risk management.

This paper aims to present in detail the challenges faced by private equity and real estate managers in meeting AIFMD risk management requirements and the potential solutions available going forward. It is structured in three parts: governance and organisation (strategic level), risk identification, measurement and documentation (tactical level) as well as risk monitoring and reporting (operational level).

Inside magazine issue 3, February 2014

Inside is Deloitte’s quarterly magazine offering an exclusive insight into best practices, trends and opportunities faced by our clients across all industries.

Inside focuses on the main hot topics relevant for the market (Asset management, Banking, Insurance, Public sector, Healthcare, Private equity, Real estate, TMT, Manufacturing and consumer business, Transport and logistics).

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