The EVCA comments on the Alternative Investment Fund Managers Directive (AIFMD) entering into force across the European Union22 July 2013
European Private Equity and Venture Capital Association Chairman George Anson said: “European private equity has invested more than €270billion into 22,000 European companies in the last five years. It is appropriate that private equity is regulated at a European level, as befits a significant and established asset class.
“It is vital both for private equity managers and the investor community, of which I am a part, that the AIFMD is implemented proportionately and consistently across the member states to ensure a level playing field, so that private equity can continue to invest, over the long-term, in Europe’s businesses.”
EVCA Secretary-General Dörte Höppner said: “The first draft of the AIFMD, designed to regulate hedge funds, could have proved highly destructive to the private equity business model had it become law. From that point five years ago, we now have a final regulation which, while still not perfect, provides some tangible benefit, most obviously through the establishment of a single market.
“This was achieved by a campaign to ensure private equity’s role as a key contributor to European growth was understood. The EVCA explained to policymakers that the industry has continued to invest during the crisis and the policymakers, to their credit, listened.
“This dialogue also bore fruit in the creation of the European Venture Capital Funds Regulation, a voluntary alternative to the AIFMD for smaller funds, exempting them from unsuitable compliance costs while facilitating cross-border fundraising.
“Our work does not end with today’s AIFMD implementation deadline. Working closely with its national member associations, the EVCA will continue to monitor consistency of transposition in member states, to work for an effective third country regime and to ensure the last remaining technical standards are finalised quickly and appropriately.
“While continuing to work on investor regulation such as Solvency II and the proposed revisions to the IORP Directive, the EVCA will maintain our crucial dialogue with policymakers on AIFMD to ensure it is applied proportionately and that we are well-prepared for the Directive's review in 2017.”
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