To the spectacular Grosvenor House Apartments by Jumeirah Living, Mayfair, for a Club Networking Breakfast. In the stunning Knightsbridge Penthouse (we assure you there are few better places to start one’s day). 50 select HedgeBrunch guests mixed and mingled over coffee and breakfast whilst taking in the spectacular views across Park Lane into Hyde Park. It may have been a quintessentially foggy London morning, but spirits were far from dampened and all were keen to engage with our chosen topic for the occasion: AIFMD – Where Are We Now?
A wide range of organisations and specialists were in attendance, ranging from national pension fund allocators to family offices, and start-up managers to blue chip funds. Kenetic Partners’ Andrew Shrimpton and Jersey Finance’s Richard Nunn were on hand to talk everything AIFMD and after some initial networking we took the time to hear from them directly.
We’re now firmly in an AIFMD world it’s safe to say, at least here in Europe. However, there remains a wide array of interpretation, misunderstanding and preparedness. Multiple factors (including fund size, domiciliation, pass-porting and reverse-solicitation to name a few) are leaving people with their heads spinning, even after a significant run-up to the July 22nd transition date. For the business-development minded the issues of marketing and capital raising strategy are the first questions asked and mercifully Mr Shrimpton concentrated on covering this first and foremost.
We delved into the distinctions of solicitation and differences between various pitch docs and media through which they are delivered, where we can market depending on our regions and what defines a fund passport. Whilst grey-areas abound this were all highly useful for the modern hedge fund marketer – if only to note that it’s a discussion that has to be had and can longer be left in the wait-and-see pile. Also touched on was the level of complacency that still seems to pervades across the globe – especially with regards to US managers. Caution is urged and careful consideration is needed – especially when it comes to defining which market a fund is looking to access.
Flexibility, expertise and clarity remain key for managers and the evidence so far is that, with the AIFMD now in place, offshore is proving to be an attractive solution for managers within the European marketplace.
Jersey were the third country to offer a fully compliant AIFMD option and has built an opt-in regime, meaning that managers can continue to benefit from the private placement regimes across the EU or opt voluntarily for the passport compliant regime.
Given Jersey’s specialist expertise in fund governance, this trend is expected to continue as managers marketing into Europe look to avail themselves of the islands attractive private placement option. As cross border finance grows, so too will the demand for tax neutral capital raising and pooling centres, and Jersey is well placed to meet that demand.
Timely and useful points all and very much on trend for the assembled HedgeBrunch guests. Our hosts at Grosvenor House Apartments topped off the occasion with prize-draw nights to stay in their spectacular residences, going to two lucky winners, along with a complimentary membership card to their exclusive and private meeting space The Atrium. Not a bad start to anyone’s day!