Whether you are an EU or a non-EU alternative investment fund manager (AIFM) of private equity, real estate, debt and credit, hedge and other alternative investment funds (AIFs) selecting how you market to EU professional investors, is an important decision.
AIFM Passport - your gateway to Europe’s professional investors
Only entities established in the EU can be authorised as AIFMs to obtain the EU marketing passport for cross-border distribution in Europe for their EU-domiciled AIFs. The passport is granted to the AIFM, which, when authorised in one EU member state, only requires limited conditions to be met and generally does not require further authorisation in any other EU member state, to market its EU AIFs to professional investors in other member states. The AIFM passport gives you access to an important investor market.
I am a European alternative fund manager - how do I get an AIFM Passport quickly?
As an EU fund manager, you can apply to your chosen EU regulator with the relevant marketing and/or management passport forms if you wish to provide cross-border services in another EU country under the AIFMD. If you are looking for a quicker, more cost effective and compliant route to market then a professional and experienced third-party AIFM enables a fund to benefit from the EU marketing passport for cross-border distribution in Europe.
IQ-EQ AIF MANCO provides a range of AIFMD compliant services for EU alternative fund managers in the areas of risk management, portfolio management, compliance and investment committee services from leading European fund centres of Luxembourg, Paris and London.
Learn more about how our know how can help you with AIFM passporting rules under AIFMD.
I am a fund manager outside of Europe do I still need an AIFM Passport?
The rules under the AIFMD directive still apply to fund managers outside the EU if you plan to market your AIF to European professional investors. For African, American or Asian fund managers marketing an AIF to EU investors, this falls under the directive e.g. a US-based fund manager managing a Cayman fund planning to market to EU investors would typically fall within the scope of the AIFM Directive. Also if you manage one or more AIFs domiciled in the EU, the directive still applies.
As a third party AIFM, we provide a range of AIFMD-related risk and regulatory compliance solutions to investment managers globally. IQ-EQ has the specialist expertise and resources to support you develop your business in Europe whilst meeting the requirements of AIFMD through our integrated professional third-party AIFM services.
Learn more about how our know how can help you market your non-EU fund to European investors.
I have an EU AIFM with AIFs outside of the EU – do I need an AIFM passport?
Under the National Private Placement Regime (NPPR) each EU member state can allow authorised EU AIFMs to market non-EU AIFs. The NPPR allows AIFMs to market alternative investment funds that otherwise cannot be marketed under the AIFMD domestic marketing or passporting regimes. There are provisions that need to be met, including the risk oversight function and compliance with depositary requirements under the directive. We provide AIF depositary services from Luxembourg, the Netherlands and the UK.
Learn more about how our know how can help you comply with the depositary requirements under the directive.
My AIF has an AIFM passport - is that all I need to worry about?
Once your AIF has the AIFM passport, you need to ensure that you continue to comply with the directive. IQ-EQ has the specialist expertise and resources to support you develop your business in Europe whilst meeting the ongoing requirements of AIFMD. We provide a range of AIFMD compliant services including Annex IV regulatory reporting for EU and Non-EU AIFs.
The journey ahead requires more than just a passport
Following the publication in January 2019 by the European Commission (EC) on AIFMD and how the current system is working across Europe, following a survey of AIFM’s, we anticipate further AIFMD reforms based on concerns raised in the consultation process. Areas of concern included; varying reporting obligations to member states; assessment of valuations; differing interpretations of depositary rules by EU member states; requirements for disclosures to investors; confusion on what constitutes marketing in different member states and different treatment of non-EU AIFs and AIFMs by member states.
We understand the changing regulatory and compliance landscape for alternative fund managers and help our clients navigate the complexities of regulations including the AIFMD.