Industry experts comment on the current challenges and opportunities that the alternative investment fund industry faces and the impact of AIFMD on the private equity, real estate and hedge fund sectors. These podcasts were filmed at ALFI’s 2014 European Alternative Investment Funds Conference.
Real Estate: “Luxembourg is the most popular international domicile in Europe for real estate funds today”
Michael Hornsby, Partner at EMEIA Real Estate Funds Leader and Co-chairman of the ALFI Real Estate Investment Funds Sub-Committee, comments on the main trends within the current real estate investment fund sector.
- There are now more than 300 real estate funds domiciled in Luxembourg and there has been diversification in the number of countries that these funds raise money from and an increase in the number of investors on average per fund.
- AIFMD has pushed real estate fund managers and service providers to formalise their operating models and create a standardisation across Europe.
- Many offshore managers wanting to access European capital look to Luxembourg for experience and infrastructure to service real estate fund market.
Private Equity: “2014 has set a record for fundraising since the crisis”
Jérôme Wittamer, Chairman of the Luxembourg Private Equity and Venture Capital Association, discusses the current state of the private equity sector and some of the key trends within the industry.
- After weathering challenging economic conditions over the last 5 to 6 years, the European Private Equity sector is now entering a new period of optimism as 2014 has set a record for fundraising since the crisis.
- Key trends include a rise in the number of PE and VC managers setting up AIFMs in Luxembourg and growth in the use of Special Limited Partnerships.
- VC and PE have yielded significant benefits for the economy and wider society and have been behind most of the last decade’s innovations in clean tech.
Hedge Funds: “The challenge is to comply but the opportunity is there”
US General Counsel at Lombard Odier Asset Management, Ray Mouhadeb, explains the challenges and possible rewards of AIFMD for alternative investment and hedge fund managers.
- Whilst hedge fund managers are faced with the challenge of being compliant, to get up and running and have the infrastructure in place to be able to distribute in the EU, there is also a great opportunity to distribute products and access types of capital that others won’t be able to.
- Private placement regimes are the more efficient approach for targeting specific key markets whereas passporting provides opportunity to access broader distribution channels.
- There is a myth around historic domiciliation of funds, when in reality the focus should be on the best approach for the investor base and how to tailor for this.