Posted on 19 July 2018

The Rise of European Flexible Manager-Led AIFs

To answer market requirements, Luxembourg, Ireland, Cyprus, Malta, Jersey, Guernsey and France have witnessed the emergence of new products.

The manager-led AIFs, which can be considered as innovative investment structures, introduce new, more flexible structuring options to the alternative investment funds industry.
Manager-Led Products are used by fund managers that are considered as Alternative Investment Fund Managers (“AIFMs”) under the Alternative Investment Fund Managers Directive (“AIFMD”) and seek to market an Alternative Investment Fund (“AIF”) into a European member state. 

By placing the regulations on the AIFM only, duplication of regulatory requirements over several entities is avoided. While local governments have designed and implemented products revealing disparities, the remove of the extra layer of oversight facilitated the launch of new open-ended and closed ended funds with a minimum requirement for red tape but with no diminution of the quality of regulatory oversight. 

Although Luxembourg, Ireland, Jersey, Guernsey, Malta, France and Cyprus launched similar products using equivalent approaches, they have to consistently ensure that they remain competitive jurisdictions fuelling the global alternative investment industry with attractive and innovative products. The recent amendment to the Cyprus Fund's legislation and the introduction of the Registered Alternative Investment Fund (RAIF), is in it's self the evidence of how European jurisdiction bring a more dynamic and competitive marketplace. 

Download a free copy of our practical guide “The rise of European flexible manager-led AIFs” for more insight.