Do you manage or advise an alternative investment fund (AIF) in the EU? The EU Alternative Investment Fund Managers Directive (AIFMD) comes into force on 22 July 2013, although businesses will have up to one year to comply, depending on their circumstances.
Most private equity funds will fall within the scope of the AIFMD.
The AIFMD imposes a number of new obligations and restrictions on AIF managers (AIFMs) that either manage an EU AIF or market a non-EU AIF within the EU. Are you well placed to ensure compliance with the new regulatory framework?
Click here for an article focusing on:
- two of the key issues affecting AIFMs who make private equity investments: (i) the significant notification obligations and (ii) the restrictions on asset-stripping
- the practical steps that the new rules require AIFMs to take.
Care needs to be taken to ensure that the notification and information obligations and asset-stripping restrictions are not accidentally triggered where the AIF’s voting rights are temporarily enhanced or when they revert to their usual level. Private equity houses may wish to revisit their standard form equity investment documents to ensure that they adequately support the AIFM’s compliance with the AIFMD.