AIFMD ineffective towards US activity in Europe, finds study

The introduction of Alternative Investment Fund Managers Directive (AIFMD) regulation is having minimal impact on US alternative fund managers’ activity in Europe according to recent research.

Research carried out by IFI, in association with Crestbridge, surveyed US managers with combined assets under management of $306 billion, finding that the AIFMD has not led US managers to make a decision on whether to expand into Europe or not.

According to the findings, instead US managers are choosing to rely on an opportunistic investor-led approach to Europe.

At the same time, most US managers were found to be focusing on a small number of European markets with the majority of managers seemingly preferring to adopt a private placement option.

Additionally, US managers stated that they would become AIFMD compliant if there were sufficient investors for their funds to make it worthwhile.

“There has been some comment on what American managers think about AIFMD, but until now no research has been done on this topic,” said CEO of Crestbridge, Graeme McArthur.

“Overall, the indications across Europe and the US are that, rather than AIFMD causing a revolution, the changes it is bringing about are part of an on-going long-term process. Whilst European managers are needing to focus more on risk, governance and reporting, it seems that for many US managers Europe is not a priority and that AIFMD is having relatively little impact,” he added.