Directive could force out small funds

Author: | Published: 22 Oct 2010

Behind the high-level passporting and third-party proposals, the day-to-day impact of the Alternative Investment Fund Management Directive is being overlooked. It could force some smaller funds out of the market. “The practical, granular level of the Directive has been somewhat forgotten,” said Jonathan Herbst, a corporate finance partner at Norton Rose in London. “The costs for smaller managers will be huge.”

To comply with the new rules, funds of all sizes will have to...