EuVECA

While developed originally to facilitate cross-border fundraising by small venture capital managers, the EuVECA label has been available to fund managers of all sizes, including AIFMD-authorised private equity fund managers, since 2013 (with a revision in 2017 - EuVECA II - to extend eligible investments and 2019 to revise some of the marketing rules, in line with changes applied to other fund legislation).

A revision is expected to be launched at the latest in 2027  to further improve the label. Invest Europe has been engaging extensively with the European Commission, to influence this response. 

How does it affect private equity?

Following the review of the Regulation, the EuVECA marketing passport provides a major potential benefit to both venture capital and private equity managers.

EuVECA II continues to allow fund managers with less than €500 million under management (and so below AIFMD minimum threshold) to raise capital from experienced investors freely throughout the EU without having to meet all of the demands of the AIFMD. In addition, it has expanded the range of portfolio companies those managers can invest in. EuVECA II has opened up a new investor base for larger AIFMD-authorised fund managers, who can market their qualifying EuVECA funds to semi-professional investors across the EU.