Alternative Investment Fund Managers Directive

The Alternative Investment Fund Managers Directive 2009/0064/COM is a law that affects hedge funds and private equity funds. The European Parliament adopted the law on November 11, 2010. The European Union law will make EU the regulatory body of hedge funds and private equity funds and include the following reforms:

  • EU investors would not be able to invest outside the EU unless it was under an “equivalent” regime.
  • Private equity funds with EU investors must disclose its business plan for a portfolio company to that company, employees and shareholders and make the information public.
  • Private equity funds must appoint an independent custodian and independent valuer.
  • Imposes limit to leverage for one time the amount of capital across a fund.

Helpful Links:
EU’s main page on alternative investments
PDF of the full proposal

Related Industries:

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