2 new directly applicable regulations are now in force.

The Alternative Investment Fund Managers Directive (“AIFMD”) is now effective as of 22 July 2013. In conjunction with the AIFMD, the following directly applicable regulations are also now in force, effectively creating 2 new regimes for funds wishing to invest in European Small and Medium Enterprises (“SMEs”):

  • Regulation (EU) No. 345/2013 on European venture capital funds (“EuVECA”); and
  • Regulation (EU) No. 346/2013 on European social entrepreneurship funds (“EuSEF”).


The main purpose of EuVECA is to provide a common framework for European venture capital funds in order to:

  • stimulate economic growth;
  • contribute to the creation of jobs and capital mobilisation;
  • foster the establishment and expansion of innovative undertakings;
  • increase undertakings investment in research and development; and
  • to foster entrepreneurship, innovation and competitiveness.


The main purpose of EuSEF is to provide a common framework for European social entrepreneurship funds by providing funding to social undertakings that are acting as drivers of social change by offering solutions to social problems.