European private placements for US managers – navigating the AIFMD minefield

Abstract

Purpose – The article sets out the practical implications of the EU Alternative Investment Fund Managers Directive for USA managers with a focus on the marketing provisions of AIFMD. Design/methodology/approach – This article summarises key marketing issues for USA managers. Findings – The article addresses in particular the means by which USA fund managers who are not regulated in the EU can access EU investors including passive marketing. Practical implications – AIFMD grants EU member states latitude when implementing their local private placement regime. Some EU member states have not yet implemented AIFMD while others have imposed conditions that are so onerous that in practical terms they equate to the negation of private placement as an option. Originality/value – The article is of value to USA fund managers who are not regulated in the EU because it provides insight into the practicalities of navigating the minefield that is AIFMD.