VERS has included compliance with the Alternative Investment Fund Managers Directive, or AIFMD, as part of candidate qualifications in the RFP it published for the mandate. The fund is seeking to invest in managers in Asia, Latin America and “optionally” Russia, according to the documents.
The AIFMD is a complex regulatory regime that will regulate fund managers’ ability to raise money from limited partners in Europe. The program is due to be implemented into the laws of each European country in three phases. Non-EU fund managers will only be eligible for authorization in phase II, which is expected in the fourth quarter of 2015.
Phase II will include tighter marketing rules as well as other AIFMD-related disclosure requirements, that may prove an obstacle both for US GPs looking for capital and European LPs seeking solid managers.
The new requirements may limit the interest from non-EU fund managers in trying for the VERS mandate.
Chris Witkowsky is editor of peHUB