Just 15% of US hedge fund managers are AIFMD compliant, compared to 82% of European managers.
Research by financial information provider Preqin, also found that around a quarter of hedge fund managers from Asia and the rest of the world are AIFMD compliant although 42% based outside the EU are not planning to raise funds within the economic block.
A reason cited by 59% of respondents is that they are avoiding the region due to concerns about the directive. Some managers based outside the EU are relying on investors to approach them through reverse solicitation but 38% of US managers have chosen to avoid the EU completely. Most cited compliance costs and risks arising from uncertainty and a lack of guidance surrounding the AIFMD.
There has been a change in attitude to the AIMFD according to Preqin surveys, 45% believed the directive will change the hedge fund landscape for the worse in June, while 58% believed this to be the case in December last year.
While the majority of UK fund managers are AIFMD compliant, Preqin found that not a single hedge fund manager surveyed thought that the directive would have a positive impact on their firm the coming year. Non-UK EU managers appear to be more in favour of the AIFMD with 55% believing it will have a positive impact.
Two-thirds of funds globally reported that the costs of complying with the AIFMD are higher than expected with not a single fund reporting that costs came in lower than anticipated.
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