Alternative Insights: Rule changes for European private fund managers

In this week's issue of Travers Smith's Alternative Insights, we are looking at liquidity routes for portfolio companies before exit.Links:https://www.linkedin.com/posts/travers-smith_assetmanagement-privatecapital-markets-ugcPost-7341038259122126849-K5r1?utm_medium=ios_app&rcm=ACoAAANSBP8B6s50YH7QZ6bxZ_O1alhPfCdpZEM&utm_source=social_share_send&utm_campaign=copy_linkhttps://www.traverssmith.com/knowledge/knowledge-container/pisces-key-questions-answeredhttps://www.gov.uk/government/news/government-goes-further-and-faster-to-boost-capital-markets-by-delivering-pisceshttps://on.ft.com/3FyWeM2

In this week's issue of Travers Smith's Sustainability Insights we are looking at the ongoing review of the SFDR.Links:https://finance.ec.europa.eu/sustainable-finance/disclosures/sustainability-related-disclosure-financial-services-sector_en#:~:text=attracting%20private%20funding%20to%20help%20Europe%20make%20the%20shift%20to%20a%20net%2Dzero%20economy.https://www.traverssmith.com/knowledge/knowledge-container/possible-changes-to-the-eu-sfdr-the-european-commission-seeks-views/https://finance.ec.europa.eu/document/download/0f2cfde1-12b0-4860-b548-0393ac5b592b_en?filename=2023-sfdr-implementation-summary-of-responses_en.pdfhttps://ec.europa.eu/info/law/better-regulation/have-your-say/initiatives/14666-Revision-of-EU-rules-on-sustainable-finance-disclosure_enhttps://ec.europa.eu/info/law/better-regulation/have-your-say/initiatives/14666-Revision-of-EU-rules-on-sustainable-finance-disclosure/F3562074_enhttps://uksif.org/uksif-response-eu-commission-sfdr-call-for-evidence/https://finance.ec.europa.eu/publications/categorisation-products-under-sfdr-proposal-platform-sustainable-finance_enhttps://www.traverssmith.com/knowledge/knowledge-container/simplification-or-deregulation-the-eus-sustainability-omnibus-explained/

In this week's issue of Travers Smith's Alternative Insights, we are looking at the rule changes for European private fund managers.Links:The Regulation of Hedge Funds and Private Equity: A Case Study in the Development of the EU’s Regulatory Response to the Financial Crisis by Eilis Ferran :: SSRNFinancial services – review of EU rules on alternative investment fund managersReport on the operation of the alternative investment fund managers directive (AIFMD) – Directive 2011/61/EUKickstart economic growth – The Labour Partye6cd4328-673c-4e7a-8683-f63ffb2cf648_enRegulations for Alternative Investment Fund Managers (Accessible) - GOV.UKCall for Input: Future regulation of alternative fund managersTargeted consultation on integration of EU capital markets 2025 - European CommissionCommission unveils savings and investments union strategy to enhance financial opportunities for EU citizens and businesses - European CommissionThe Draghi report on EU competitiveness

In this week's issue of Travers Smith's Sustainability Insights we are looking at the forthcoming round of sustainability reports for alternative asset managers. Links:https://ec.europa.eu/info/law/better-regulation/have-your-say/initiatives/14666-Revision-of-EU-rules-on-sustainable-finance-disclosure_enhttps://www.gov.uk/government/publications/climate-related-financial-disclosures-for-companies-and-limited-liability-partnerships-llpshttps://www.traverssmith.com/knowledge/knowledge-container/sustainability-disclosure-requirements-sdr-and-investment-labels-the-new-rules/#A2:~:text=section%203%20below.-,Entity%2Dlevel%20disclosures,-Requirements%20on%20UKhttps://assets.bbhub.io/company/sites/60/2021/10/FINAL-2017-TCFD-Report.pdfhttps://www.traverssmith.com/knowledge/knowledge-container/the-clock-stops-but-the-bus-rumbles-on-csrd-omnibus-clears-its-first-hurdle/https://www.ifrs.org/issued-standards/ifrs-sustainability-standards-navigator/

In this episode Simon, Trysha Daskam-Smith, Head of ESG Strategy at Silver Regulatory Associates and Michael Raymond delve into pressing issues faced by European fund managers when dealing with US investors amidst the current headlines. Tune in to explore:A nuanced discussion of how the term ESG is perceived across different markets, especially US investors with varied stances in different statesPractical advice on communicating ESG commitments consistently and factually, avoiding political pitfalls while emphasising value creationHow international regulatory standards influence global fund marketing strategies

In this week's issue of Travers Smith's Alternative Insights, we are looking at the UK regulator's review of valuations in private markets, highlighting some important action points for UK-regulated firms. Links:FR10/23 Thematic Analysis: Emerging Risks in Private FinancePrivate market valuation practices | FCA23-013_6a38dcc8-4aff-4acc-8f28-d024728613d6.pdfHow Fair are the Valuations of Private Equity Funds? by Tim Jenkinson, Miguel Sousa, Rüdiger Stucke :: SSRNPortfolio letter: Asset Management & Alternatives - Supervisory Strategy

In this week's issue of Travers Smith's Sustainability Insights we are looking at investments in defence by alternative asset managers.Links:Rethinking Defense: The Role of Private Capital | Bain & CompanyPreqinWoke guns? Banks want weapons badged as a social good – POLITICOOur position on sustainability regulations and UK defence | FCAESMA Guidelines on Fund Names | Travers SmithEU foreign subsidies regulation: another notification regime for dealmakers to become law | Travers SmithAsset managers race to set up European defence fundsDutch pensions to invest €100bn in risky assets boosting Europe’s defence efforts23-315 EIF Policy on Exclusions and Restrictions.pdfNorway urged to drop ‘crazy’ ban on investment in defence companiesguidingprinciplesbusinesshr_en.pdfBHR-Arms-sector-info-note.pdfFrom Berlin to Tokyo, the fears of a new nuclear arms race

In this week's issue of Travers Smith's Alternative Insights, we are looking at securitisation reform in Europe.Links:UK regulators to face twice-yearly reviews as Reeves vows to slash red tape | Rachel Reeves | The GuardianNew approach to ensure regulators and regulation support growth (HTML) - GOV.UKNew approach to ensure regulators and regulation support growth (HTML) - GOV.UKSimplification or Deregulation? The EU's Sustainability Omnibus Explained | Travers SmithHow to fix Europe’s securitisation market&nbsp;US and Asia securitisation markets contribute far more to financing their economies than Europe - “Now is the time to address the gap | AFMEInvestors call for shake-up of Europe’s ‘failed’ securitisation marketReviving the UK securitisation marketApollo Sees €1 Trillion Opportunity If Europe Overhauls ABSSecuritisation Data Report Q4 2023 &amp; 2023 Full Year | AFMEThe Opportunity Of Asset-Based Finance Draws In Private Credit | S&amp;P Global Ratings97e481fd-2dc3-412d-be4c-f152a8232961_enSecuritisation | FCATargeted consultation on the functioning of the EU securitisation framework 2024 - European CommissionACC and AIMA respond to European Commission’s consultation on securitisation<a...

In this week's issue of Travers Smith's Sustainability Insights we are asking whether it still makes sense for global compliance programmes to adopt a single standard.Links:Anu Bradford | Columbia Law SchoolFact Sheet: President Donald J. Trump Protects Civil Rights and Merit-Based Opportunity by Ending Illegal DEI – The White HouseFederal Register :: Pausing Foreign Corrupt Practices Act Enforcement To Further American Economic and National SecuritySEC.gov | Acting Chairman Statement on Climate-Related Disclosure RulesFinal rule: The Enhancement and Standardization of Climate-Related Disclosures for InvestorsUS judge temporarily blocks Trump’s anti-DEI purge | US news | The GuardianCOMPS-9569.pdfFailure to prevent fraud guidance published – what do businesses need to do now? | Travers SmithSimplification or Deregulation? The EU's Sustainability Omnibus Explained | Travers SmithEnsuring Accountability for All Agencies – The White HouseDefending American Companies and Innovators From Overseas Extortion and Unfair Fines and Penalties – The White HouseWithdrawing The United States From The World Health Organization – The White House

In this week's issue of Travers Smith's Alternative Insights, we are looking at tax incentives in private markets.Links:Our 2024 budget briefing - https://www.traverssmith.com/knowledge/knowledge-container/autumn-budget-2024/BVCA The tax treatment of carried interest – Consultation on qualifying conditions - https://www.bvca.co.uk/static/2e27e13b-ef87-440e-b75bb6717c8e228a/BVCA-response-to-carried-interest-consultation-31-Jan.pdfOur briefing: Salaried members update: HMRC to reverse controversial guidance changes on increases in capital contributions - https://www.traverssmith.com/knowledge/knowledge-container/salaried-members-update-hmrc-to-reverse-controversial-guidance-changes-on-increases-in-capital-contributions/