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:

  1. If they can avoid European “marketing“, they can usually avoid the AIFMD; and
  2. 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.

Posted by Cooley