Firms Mobilise for Directive’s Second Leg

"Private equity firms have sprung into action to reduce the impact of Europe's new alternative investment rules, even before the final draft has been passed, according to lawyers.

Lisa Cawley, a partner in the regulatory practice at Kirkland & Ellis, said: 'The final draft of the directive has only just been published but private equity firms are keen to ensure the details agreed in the next round are sensible.'

The definition of assets under management is another concern because it will determine which firms must comply with the directive. Cawley said: 'It is not clear yet whether this will be calculated by reference to commitments or to current net asset value and this could make a significant difference to some firms.

'Small firms are also concerned that if they slip over the threshold they will only have a very short period to apply for registration, so it is important to have clarity on the triggers.'"

This article appeared in its entirety in the November 1, 2010 edition of Private Equity News.