On 10 November 2010, the Alternative Investment Fund Managers Directive (‘AIFMD') was adopted by the European Parliament, having harboured much controversy during the year. The directive has introduced rules for managers of alternative investment funds (‘AIFM') on the transparency and disclosure of information relating to investors, portfolio company management and employees.

The new rules will impose more transparency on the industry and bring it under European supervision, and set out requirements for risk management, minimal capital and liquidity cushions. The positive outcome for the industry is that the agreement represents a significant advance from the situation in April 2010, when member states were on the verge of voting through an agreement that would have excluded the EU market to funds from third countries, significantly undermining competition and closing off a source of investment to the EU economy.

Europe’s private equity is a relatively young industry, and yet it has become an important contributor to investment into EU companies and innovation. There is still much in the directive that will be difficult to implement for the industry, and there will be a heavy compliance burden that the industry is going to have to bear. As such, CVC will embrace the responsibilities and opportunities this regulation will entail, yet also strive to minimise any unnecessary costs for our investors and ultimately Europe’s pensioners.

For more information on the AIFMD, visit the Invest Europe website.


As a member of the British Venture Capital Association (BVCA), CVC endorses and complies with the recommendations in the Walker Guidelines of Disclosure and Transparency in private equity in the UK published in November 2007 on the ‘comply or explain’ basis set out therein. Much of this we already undertake in our dealings and communications with the stakeholders in our business and the wider community, and we will continue to use the CVC website as a means of conforming to the disclosure guidelines for a private equity firm. In addition, we promote conformity with the Walker Guidelines amongst those investments in the UK which meet the Walker definitions of a portfolio company and in which CVC funds have a controlling interest.

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