Publications
& Policy

With the OECD work on Base Erosion & Profit Shifting (BEPS) now nearing its completion, and with various new tax rules having being agreed at EU level to increase transparency, significant reform has been brought about in the tax domain. At Invest Europe, we have contributed to numerous consultations and proposals to ensure that any new rules do not have unintended consequences. This short note brings together our common messaging on tax issues concisely explaining why private equity funds use structures such as holding companies and invest via certain jurisdictions.

Three years ago, we predicted that the asset management industry was on the precipice of several fundamental shifts that would shape its future. Our paper, Asset Management 2020: A Brave New World, predicted a huge rise in assets and the emergence of several game changers that would dramatically alter the industry’s landscape. At the time, asset managers were still distracted by the economic turmoil and regulatory change that followed the Great Financial Crisis, which spanned 2008-2009. The paper laid out trends and drivers to help asset managers plan for the future by anticipating changes in the competitive environment. Turning to the game changers, the pace of change in the asset and wealth management (AWM) industry is accelerating, and following a path of creative destruction. The environment and game changers that we described in Asset Management 2020 are evolving. Ahead of publishing a full paper in the autumn, we review our earlier predictions in the following pages.

In this response to the Commission Inception Impact Assessment on its future proposal on the prudential treatment of investment firms, Invest Europe supports the principle of establishing a prudential regime better tailored to investment firms but details its concerns over a proposal that would not take into account the specificities of the private equity industry

As global challenges remain large, and continue to shape markets, integrating sustainability information is more and more important for investors. This white paper will focus on integrated sustainability, and specifically in how Robeco does this across the entire investment process. This can be narrowed down into ‘seven steps’, or stages, from defining an investment belief, to raising the bar in conjunction with international developments in ESG.

A guide for placement advisers on the application of the Code of Conduct as part of Invest Europe’s Professional Standards Handbook.

This consultation response details what additional actions Invest Europe would like the Commission to take to improve the state of European capital markets. The main focus is put on the improvement of the existing passporting framework (whether through the EuVECA review or limitations to existing fees and charges) and ways to allow an easier access to the asset class for institutional and sophisticated investors.

This Position Paper outlines our reaction to the Commission Proposal for a Directive on preventive restructuring frameworks (the Insolvency Directive) in which we welcome the proposed new rules and outline suggestions for how the proposed Directive could be improved in several areas.

A summary document of Invest Europe 2016 highlights and achievements across public affairs, professional standards, communications, data & research and events.

The PAE responded to this Discussion Paper of the European Banking Authority, stressing that the approach taken by the EBA failed to recognise the prudential risk posed by private equity managers and advisers when they conduct MiFID activities and could significantly raise the capital and liquidity requirements they are currently subject to under CRR.

The joint response from Invest Europe and the American Investment Council focuses on amendments to the draft examples in the commentary on the Principal Purposes Test (PPT) to be included in the updated Model Tax Convention.

This PAE response to a European Commission Consultation outlines the main concerns of the private equity industry with the definition of leveraged transactions, in particular the assumption that a transaction involving a private equity backed company should always be seen as leveraged and the treatment of infrastructure loans.

This Invest Europe response calls for the determination of simpler thresholds for the EU Merger regime.

The private equity industry has evolved rapidly over its relatively short history mirroring the increasingly complex relationships between General Partners (GP) and Limited Partners (LP).

Historically the industry has shown remarkable resilience when it comes to changing the fees that investors pay to managers. The terms on how GPs and LPs connect have changed, but have the fee structures evolved too? Is the industry broadly sticking to the 2/20 fee model or are some actors adopting contrary positions? If variances exist, are these also impacting fundraising and performance?

The latest paper from the Adveq Applied Research Series aims to answer these questions and more.

MERCER: Comprehensive overview of investment strategy across the European pension industry, and emerging trends in the behaviour of institutional investors.

This paper, based on the response to the Commission Consultation on the cross-border distribution of investment funds, has for objective to summarise the key issues faced by the European private equity industry with the existing passporting framework.