Investors such as pension funds and insurers need access to long-term, illiquid asset classes to achieve the strong, stable returns required to meet their long-term liabilities. Europe’s economy needs long-term patient capital. Creating the right conditions for long-term investment is a priority that European private equity is keen to work on with both national and European regulators and this is reflected in our approach to many of the specific policy issues under consideration.
Invest Europe is engaged in the ongoing discussions on the proposal for a Regulation on Structural Reform of Banks, the review of the Pension Fund Directive (IORP), and the Commission’s proposed new Investment Plan for Europe. Invest Europe was also active in the debates around the review of the Insurance Fund Directive (Solvency II), and the proposed Regulation on European Long-Term Investment Funds (ELTIFs). Furthermore, Invest Europe is actively involved in the discussions around the Capital Markets Union, reflecting private equity’s role as an important source equity investment in European businesses.
A similar debate about long-term investment is taking place at international level. Invest Europe works closely with its counterpart associations in the US, the American Investment Council (AIC) and the National Venture Capital Association (NVCA), and around the world. These relationships are more and more important as regulators increasingly look to draft global financial rules.