Private Equity Funds
The AIFMD has a significant impact on private equity managers based in the European Union or having investors in the European Union. Upon the introduction of the Directive certain grandfathering provisions applied, generally exempting closed-end funds.
Managers of Private Equity funds whose assets under management fall below certain thresholds may only be subject to a lighter regime, which includes registration with regulators, notification of investment strategies and certain investment reporting requirements.
Each qualifying fund is required to have a single manager responsible for ensuring compliance with minimum requirements in the fields of remuneration, valuation, safe keeping of assets including the appointment of a single depositary, risk management, transparency and reporting. Specific fund disclosure requirements apply in relation to leveraged funds and funds with controlling influences in larger unlisted companies. Moreover, all qualifying funds investing in unlisted companies may face restrictions to so-called ‘assets stripping’.
Darwin Depositary Services has broad experience in private equity and is fully equipped to render full depositary services for private equity funds in an efficient manner.