Publications
& Policy

In this position paper, we welcome the European Commission's targeted amendments to AIFMD, ELTIF and EuVECA to reduce regulatory barriers to the cross-border distribution of investment funds in the EU but stress that the proposed Directive and Regulation are insufficiently tailored to the private equity and venture capital asset class, in particular regarding the definition of pre-marketing.

The most comprehensive source of European private equity and venture capital fundraising, investment and divestment data. With statistics on more than 1,250 firms, the 2017 report covers 89% of the €640bn of private equity capital under management in Europe.

L’étude France Invest/EY sur la performance des acteurs français du capital-investissement est la référence sur le marché français depuis 1994. Elle est réalisée à partir des informations déclarées par les membres de France Invest via une plateforme de collecte de données européenne (European Data Cooperative), et revues par EY, ce qui permet d’assurer l’exactitude et la robustesse des statistiques publiées.

Mercator Institute for China Studies: In this report, we first explain what reciprocity means and what role it has played in creating today’s institutional environment for global trade and investment. Then we describe why the emergence of China as a global investor is challenging those principles. Finally, we discuss the negative impacts for Europe from this reciprocity gap and illustrate the urgent need to address the existing gap. We conclude by offering recommendations to European policymakers.

A comprehensive and up-to-date set of standards and guidelines for the private equity industry.

The H1 2017 activity data report provides a review of semi-annual trends of European private equity and venture capital activity (Fundraising, investment and divestment) since 2007. Please note that this data is preliminary and subject to change.

This letter stresses the importance for the private equity industry of transitional arrangements between the United Kingdom and the European Union after March 2019. It calls for a transition period that would guarantee the continuity of investment into the EU economy, avoid any cliff edge and allow the industry to adapt properly to new long-term arrangements.

A summary document of Invest Europe 2017 highlights and achievements across public affairs, professional standards, communications, data & research and events.

When investors commit capital to a private equity fund, the money is not immediately invested but is called by the fund manager throughout an investment period of up to five years. This business model allows private equity fund managers to invest the committed capital at their own dis-cretion, which gives them the flexibility to time the markets. Based on 5,366 private equity deals, which are benchmarked against around 11,000 transaction market multiples and 170,000 trading market multiples, we find evidence that on average private equity funds are able to add value by timing the markets. Throughout the holding period, private equity funds achieve on average a 0.5 EBITDA market multiple expansion. Market timing ability is not captured by performance measures such as the PME, yet it is a potential source of returns for investors.

This consultation response has been written from a pure AIFMD perspective, outlining in great detail the issues private equity fund managers are facing with the Directive’s requirements in the field of registration, notification and supervisory reporting. Special attention is paid to the divergent application and implementation of the Annex IV requirements.

This Europe Economics report commissioned by Invest Europe shows the impact that the Alternative Investment Fund Managers Directive (AIFMD) has had on private equity fund managers, their investors and the real economy since its entry into force in July 2013.

In this response, Invest Europe has confirmed its support for the European Commission’s work in this field, recognising the fiduciary duty of institutional investors and asset managers to incorporate sustainability factors in their investment decisions and monitoring. However, we feel it is important to maintain a certain level of discretion and flexibility, as it will be up to asset managers and investors themselves to decide and agree on how they do this given they might have different (responsible) investment approaches, clients and beneficiaries, and operate under different (national) legislation.

In this response, the private equity industry supports the European Commission’s initiative to reduce the burden of public offering for smaller firms, noting that these firms are often discouraged from seeking to launch an Initial Public Offering (IPO) on public markets given the amount of requirements they are subject to.

The consultation launched in November 2017 is EIOPA’s final step to reassess the treatment of unlisted equity in the context of Solvency II review. This response reiterates our concern that the current 39% risk charge for private equity does not reflect the actual risk insurers face when investing in the asset class. It suggests therefore that a sub-category of asset should be created to allow for a more appropriate risk calibration. It also underlines that in setting a sound regulatory framework for risk calibration, it is critical that the approach taken reflects the way in which exposure to private equity is achieved by insurers.

Since 2007, the “fair value” (also referred to as the “fair market value”) rule applies to the valuation of assets held by institutional investors. This is the direct result of the application of the US GAAP FAS 157 (now ASC 820) and the IFRS 13, which converged in 2011 with the definition of fair value as the price that would be received by a seller for an asset in an orderly transaction between willing market participants at the measurement date. These accounting rules explicitly required institutional investors to take market prices and conditions into account when valuing all their assets. Private equity fund managers themselves had, therefore, to implement these rules to report to their investors accordingly.