Maitland Roundtable: Capital Raising & Distribution in the EU
A meeting of the minds to capture the unique perspectives of industry experts in the alternative space.
On behalf of our colleagues at Deloitte (Luxembourg & NY), Agecroft Partners and Fergus Capital, welcome to the inaugural edition of “Maitland Roundtable.” This reporting series is designed to capture the unique perspectives of subject matter experts in the alternative space.
In this January issue, we examine the hot topic of capital raising and distribution in the EU. We had much fertile ground to cover and among the key themes we explored:
Is the US market “done”?
- The EU is such a compelling proposition right now with investors desperate for returns in a negative-interest rate environment and given the reluctance of banks to lend.
- Opportunities appear to be opening up in the EU pension fund/institutional space, with regulations allowing greater allocations to alternatives.
Where to start in the EU?
- Peek into the jurisdictions with the easiest access to which markets – and what products provide the fastest time to market.
- Luxembourg has secured a leading spot – with €3,500 billion AUM and being the vanguard in offering managerled products such as the new, flexible Reserved Alternative Investment Fund (RAIF).
How to navigate the alphabet soup of regulations?
- Check in on how the National Private Placement Regime (NPPR) is playing out and what this means for US alternative managers.
- Compliance with the Alternative Investment Fund Managers Directive (AIFMD) will soon become the minimum standard, allowing managers to tap into a larger investor base.
- Third-party AIFMs are helping to address “substance” and tax (Base Erosion and Profit Shifting/BEPS) – with the due diligence needed for a running start – even if managers are only handling the asset management on a delegated basis.
It’s about the journey AND the destination!
- With the spawn of innovation such as the ability to partner with a ManCo, tides are turning for the AIFMD, as it is no longer viewed necessarily as a burden.
- There’s a growing appetite to get stamped and regulated. Products compliant with the AIFMD are looking attractive to institutional investors seeking access to the EU marketing passport.
- Who says we need to play the waiting game? While we all continue to monitor Brexit and the important UK market – there’s no doubt that there are opportunities ripening now.