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Almost half of all respondents to Preqin’s fund manager survey cited compliance costs as their primary concern with the AIFMD. The increased cost of conducting business within the EU has caused a number of industry commentators to predict a movement away from European activity, with fund managers preferring to target burgeoning economies in Asia and elsewhere. A particular cause of expense for fund managers operating in Europe is the uneven implementation of the directive. For the AIFMD, this has resulted in differences in reporting structures for alternative investment managers, as well as differences in approaches to issues such as reverse solicitation.
There is no doubt that the AIFMD has resulted in teething problems for active investors within the EU, but the value of opportunities in the region will continue to attract capital. For policymakers, the key issue over the course of 2015 will be to ensure that EU-based investors still have access to the most lucrative investment opportunities abroad.
2015 Preqin Global Private Equity & Venture Capital Report