Survey: AIFMD failing to fulfill its objective

It’s been more than two years since the Alternative Investment Fund Managers Directive (AIFMD) took effect, and the private equity industry does not think the regulatory overhaul is fulfilling its goal of providing increased investor protection.

According to a fresh survey from fund administrator Augentius, 70 percent of private equity firms do not think AIFMD has delivered on its promise to protect investors. An even larger majority (75 percent) disagree with the assertion that AIFMD has strengthened the private equity or real estate markets.

This grim view on the impact of AIFMD may have something to do with the daily headaches the directive is causing GPs. When asked about their most challenging day-to-day activities in 2015, respondents’ top answer was market regulation, followed by deal opportunities and then tax regulation.

However, GPs may anticipate getting more comfortable with AIFMD in 2016, because when asked to predict their most challenging day-to-day activity in 2016, deal opportunities rose to the most popular answer, followed by regulation and then fundraising.

Augentius also polled GPs on what they want from a fund administrator. Respondents said that the most important characteristic of a fund administrator was the strength of the people (37 percent), followed by the administrator’s technology platform and specialization (both at 17 percent).