By Georgina Lee
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| Thomas Hugger COO & CFO of Leopard Capital |
A private equity COO fears rule tightening is too broad-brush and will inflate costs, while a fund-of-hedge-fund COO says clarity is needed over new reporting requirements.
Private equity and
fund-of-hedge-fund managers in Asia point to growing fundraising difficulties outside
the region amid a regulatory clampdown.
The alternative investment
fund managers directive (AIFMD) comes into force in Europe as early as this
June – reform that will reshape the way alt funds are marketed in the EU. No
matter where they are domiciled, all non-Ucits funds are covered under the
directive.
Thomas Hugger, COO for $57
million PE manager Leopard Capital, says having the same, broad-brushed
regulatory principles governing private equity funds and hedge funds fails to
take into account the customised nature of how PE sponsors put their money to
work.
He notes that using a
depository is a challenge for PE managers. Unlike hedge funds, PE sponsors do
not always invest in a company’s equity. Instead, they may invest by providing
mezzanine capital, convertibles, loans or other structured products and
derivatives.
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