Overview

After months of debate, the European Parliament has approved the final Alternative Fund Managers Directive, meaning that for the first time, managers of non-UCITS private funds including private equity, venture capital, hedge, real estate, infrastructure and funds of funds in the European Union and beyond face the prospect of EU regulation.

From the time the initial draft of the Directive was published in April 2009, it has been subject to vigorous debate and scrutiny, with much criticism directed both at its premise and its detailed provisions by the private funds sector and politicians alike.

The Directive, whose passage through the legislative process has been beset by delays, has spent most of this year passing between the European Council, Commission and Parliament with disagreement on key provisions halting the process on many occasions.

However, following a quick succession of drafts throughout September and
October, a final text was eventually agreed upon. This briefing from Baker & McKenzie has the details.