The European Fund and Asset Management Association (Efama) has released a detailed report examining Europe’s Alternative Investment Fund (AIF) market, comparing its growth to Ucits and discussing the implications of the recent AIFMD review.
As of the first half of 2023, AIFs have reached €7.26 trillion in net assets, showing a 41% growth since 2015.
The report notes AIFs’ less fluctuating net asset growth and net sales compared to Ucits, attributed to AIFs’ long-term investor base and closed-ended structure.
Germany, France, Luxembourg, Ireland, and the Netherlands are the top AIF domiciles, collectively holding over 82% of the market share.
Real estate funds and ‘other’ AIFs, encompassing private equity and hedge funds, have seen increased market shares.
The report also outlines significant regulatory changes following the AIFMD review, including the unchanged delegation regime, the introduction of liquidity management tools and new rules for loan origination funds, enhancing the AIF framework’s efficiency.
Thomas Tilley, senior economist, EFAMA, commented: “The solid growth of AIF assets under management since 2015 suggests that, overall, the AIFMD is functioning well. AIFs clearly have a place, next to UCITS, in delivering returns to investors and providing financing to the economy. The growing importance of cross-border AIFs in particular is encouraging, as it is an indication that the deepening of the single European capital market is progressing.”
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