Thu, Oct 17, 2013

"Independent Valuation Under the Regime of the AIFM Directive" - Managing Director Mathias Schumacher and Director Ryan McNelley published in Financier Worldwide

The Alternative Investment Fund Managers Directive (AIFMD) is a broad piece of European Union regulation which governs managers of alternative investment funds (hedge funds and private equity funds and other such fund vehicles). The Directive became effective earlier this summer, but some member states (most notably the UK) have allowed for a transition period lasting through July 2014.

One aspect of the Directive that has not generated the same level of media coverage as others is the requirement for independent valuations. Addressing the subjectivity, transparency and judgement that are inherent in the valuation of illiquid investments is a focal point of the Directive’s provisions regarding valuation. There are very specific steps that AIFMs must take in order to comply with these new valuation requirements, even for those managers with predominantly liquid investments. 

Read a more in-depth overview of the options available to alternative investment fund managers to address the valuation provisions of the Directive, and steps they can take in our article, written by Mathias Schumacher and Ryan McNelley, and originally published by Financier Worldwide, September 2013.

Click here to read the full article.