Opalesque Industry Update - Preqin’s latest survey of global hedge fund managers reveals that most UK- and Europe-based hedge fund managers
are AIFMD-compliant. By contrast, there has been slow uptake among firms beyond the EU’s borders; a quarter of
hedge fund managers based across Asia and Rest of World currently comply, and only 15% of firms based in the US.
A large proportion (42%) of fund managers based outside the EU do not plan to raise capital from EU investors in the
near future; of this group, 59% are avoiding the region due to concerns about the AIFMD. Many managers based
outside the EU are relying on investors to approach them through reverse solicitation. Even so, 38% of US managers
have chosen to avoid the EU completely, with most citing compliance costs and the risks arising from uncertainty and
lack of guidance surrounding the directive. Other Key Hedge Fund AIFMD Stats:
Comment: “As we approach the 22nd July anniversary of its implementation, the AIFMD has had a varied effect on the hedge fund industry. While general negativity towards the regulation has fallen over the past six months, 45% of fund managers still believe the AIFMD will change the industry for the worse, and only 23% feel it will have a positive impact. Although in Europe most hedge funds are AIFMD-compliant, only a relatively small number of fund managers from beyond the EU’s borders have acquired compliance status. Despite having one of the highest levels of compliance (90%), not a single UK-based fund manager felt the directive will have a positive impact on their business. Many non-EU fund managers are choosing to avoid investment from the region completely, which may result in a reduced choice of funds available for investment for EU-based investors. The leading concern hedge fund managers have about the new regulation is the increased costs of complying with the EU directive, with two thirds of those managers that have acquired the passport stating the costs have been higher than they originally expected.” Amy Bensted – Head of Hedge Fund Products, Preqin Press Release
|
Industry Updates
Preqin: Only 15% of US hedge fund managers are now AIFMD compliant
Tuesday, July 21, 2015
|
|