Many non-EU fund managers raising non-EU alternative investment funds will accept European investors on a “reverse solicitation” basis; but they won’t “market” into Europe.
This is usually because:
- If they can avoid European “marketing“, they can usually avoid the AIFMD; and
- They expect the cost of AIFMD compliance to be disproportionately high, when compared to the value of the fund they’re raising.
But sometimes, the cost of compliance is very low; or the benefits outweigh the cost.
We’re preparing a series of Client Alerts, which explore these issues. The first (available here) looks at the “AIFMD-lite” regime for “small” non-EU fund managers that are raising a non-EU fund from non-EU investors and non-retail UK investors.
The #AIFMD: perhaps it’s not as bad as you think.