Insights / 22 February 2016

Research reveals AIFMD having little impact on US manager attitudes towards Europe


The ‘Impact of AIFMD on the European & US alternative fund industries’ research, conducted by IFI Global and sponsored by fund and corporate service provider Crestbridge, was published last month. Surveying US managers with total combined assets under management of US$306bn, the research focuses on how the AIFMD has impacted approaches across the hedge, private equity, infrastructure and real estate sectors to the European investor landscape.

Key findings from the research include:

These conclusions follow the publication of findings from a preliminary European-only piece of research carried out by IFI Global at the end of last year. It revealed that, although the AIFMD has required European managers to include extra items in their risk reporting, the majority had not been required to make wholesale changes to their systems.

Graeme McArthur, CEO, Crestbridge, commented: “There has been some comment on what American managers think about AIFMD, but until now no research has been done on this topic. As a pan-jurisdictional service provider supporting managers in both Europe and the US, we were therefore delighted to sponsor this research and shed some light on the impact of the Directive.

“Overall, the indications across Europe and the US are that, rather than AIFMD causing a revolution, the changes it is bringing about are part of an ongoing long-term process. Whilst European managers are needing to focus more on risk, governance and reporting, it seems that for many US managers Europe is not a priority and that AIFMD is having relatively little impact."

“What is interesting, particularly from the point of view of a service provider with operations in both onshore and offshore locations, is that both the ManCo and private placement routes into Europe are being used by those US managers with European interests, with the rise of the ManCo set to be the most significant structural change brought about by AIFMD.”

Crestbridge has a well-established ManCo platform in Luxembourg and was granted a ManCo licence in Jersey last year, making it one of the only service providers in the jurisdiction to be able to act on behalf of fund managers as an appointed management company. The firm has also recently opened an office in the Cayman Islands.