Ian Meade Quoted by Financial Times on US Hedge Funds in Europe
Financial Times, in its article “US hedge funds threaten to flee Europe,” quoted Akin Gump investment management partner Ian Meade regarding the impact of the Alternative Investment Fund Managers directive on the ability of non-European alternative fund managers to market directly to consumers.
Meade noted that, as a consequence, several large U.S. hedge funds “are not going to market to European investors any more. They already have access to investors in Asia and the Middle East, but Europe looks like hard work, so they are pulling the shutters down.”
Further, regarding the ability of U.S. hedge funds to market to European investors under private placement regimes, he noted that there remains a “lack of certainty about the reporting requirements” that has caused some U.S. alternative funds managers to take a “wait and see” approach.
He also pointed out that certain European institutional investors, including large Dutch and German pension funds, are upset that the AIFM directive could have the unforeseen effect of curbing their access to a group of alternative fund managers, noting “There is limited appetite among continental European investors to invest in London hedge funds as most [of their investment] goes to bigger institutional U.S. hedge fund managers. This could limit choice for institutional investors.”