IPOs

It also creates a passport mechanism enabling the prospectus approved by the competent authority in one member state to be valid for public offers and admission to trading of securities in the entire EU. Entities issuing shares on public markets also have to comply with EU market abuse rules.

A new review was launched at the end of 2022 and is currently ongoing. 

How does it affect private equity?

While most AIFMs and EuVECA fund managers do not usually have to comply with regulated markets and Prospectus requirements, such legislation may be relevant for private equity and venture fund managers when they market their funds on or through capital markets or when they exit a portfolio company via an initial public offering (IPO).