European Fund Raising In The Channel Islands: An Efficient Solution

History and Consequences

Fund raising and fund management activity in Europe changed significantly in 2013 with the introduction of the Alternative Investment Fund Managers Directive ("AIFMD"). The popularity of onshore Europe for fund management and fund domicile activity increased significantly as a result of the ability to "passport" the offering of European domiciled alternative investment fund products throughout the 28 member states of the European Union (the "EU").

While undoubtedly a benefit for an EU Alternative Investment Fund Manager ("AIFM") seeking to raise investor funds in any or all member states of the EU, the ability to passport does, however, come with increased regulation and scrutiny for the AIFM. In practice, the passport requires the AIFM to fulfil a plethora of regulatory obligations and procedures each adding a layer of cost and administrative burden to the fund management structure. Research shows that AIFMD has in essence made marketing