US Hedge Fund Managers: Accessing Capital and Marketing in Europe
Recent regulatory change, principally the introduction of the Alternative Investment Fund Managers Directive (‘AIFMD’), has made the marketing of hedge funds in the European Economic Area (the ‘EEA’) more involved, particularly for managers based outside the EEA. This appears to have led some US investment managers to reduce their marketing in the EEA. However, given that European investors account for around 20 per cent of global hedge fund assets under management, it is likely that this reaction to the more onerous regulatory environment that now exists in Europe is simply temporary.
This article, authored by Dechert associate Craig Borthwick, provides an overview of the key regulatory requirements relevant to marketing a fund in Europe and discusses how US hedge fund managers may best access capital in Europe.