Between Brexit and the removal (in 2021) of national private placement regimes in the EU, raising European money “will soon, unequivocally, require an EU-domiciled authorized AIFM.” So say two execs from administrator Alter Domus in a sponsored article for sister publication PERE in support of outsourcing AIFM services (other providers are, of course, available.)
Setting up your own AIFM in, say, Luxembourg is getting more costly, the authors write, due among other things to something called Circular 18/698. This makes more administrative demands such that “managers that had established only a small local presence to face the minimal requirements to meet the regulations, but had the bulk of the operations being performed by central hubs throughout Europe or elsewhere, have suddenly had to staff up locally and maintain an infrastructure for additional operations in Luxembourg.”
Hence an uptick in outsourcing to third-party AIFM providers. Read more here.
Email prepared by Toby Mitchenall.