Reverse Solicitation: The Exception That Regulators Expect To Remain Exceptional

Reverse solicitation can provide a legitimate route for an investment where the investor has approached an alternative investment fund manager (AIFM) entirely on its own initiative. Yet it remains one of the most scrutinised and debated concepts in fund distribution. The distinction matters: if the interaction amounts to marketing, the relevant passport notification, national private-placement conditions or other local requirements must be satisfied before the investment can be accepted. Reverse solicitation should therefore be approached as a narrow, fact-specific exception — not as a distribution model that can be designed in advance.

Start with the investor’s initiative

Under the AIFMD framework, an EU professional investor may invest in an AIF on its own initiative. The analysis turns on the substance of the investor journey: who initiated the contact, what was requested, which AIF was discussed and what communications preceded the subscription. An investor’s existing