The broad scope of the Directive captures many managers of hedge funds, private equity funds, real estate funds and alternative funds, including funds that are marketed in the EU. Some vehicles have been either lightly regulated or unregulated in the past and the work required to adapt their operations to the new requirements is substantial. The operating model of managers that run funds across multiple jurisdictions is also being impacted and the value chain may need to be re-organised due to new rules on delegation and depositaries.
The AIFMD has been transposed into national legislation in a number of EU Member States, including Ireland. As a result in practice, many managers have already completed their gap analysis and are now addressing identified gaps.
In this publication we provide an overview of the AIFMD (Level I and Level 2) legal and regulatory framework that governs the alternative investment fund industry in the EU that has, since July 2013, re-shaped the operations of managers and the alternative funds they manage.