Brexit looms at a time ripe with new opportunities and challenges for managers seeking to market in the E.U. and around the world. On the one hand, managers must reconsider the types of vehicles and jurisdictions to use to preserve access to the E.U. markets. Additionally, new legislation – such as the impending Packaged Retail and Insurance-based Investment Products (PRIIPs) initiative – may present new barriers to managers marketing in Europe. On the other hand, however, global markets are opening up as certain vehicles, such as Undertakings for Collective Investment in Transferable Securities
(UCITS), are increasingly welcomed by local regulators. These issues were discussed at a seminar entitled “Current and Future Developments: UCITS, AIFs, Brexit and Global Fund Distribution,” presented by Dechert’s financial services group on October 13, 2016. Moderated by Dechert partner Chris D. Christian, the seminar featured partners Richard L. Heffner, Karen L. Anderberg, Marc Seimetz, Mark Browne and Angelo Lercara. This article, the second in a two-part series, describes the increased usage of UCITS structures and the potential effect of impending PRIIPs legislation, as well as options for managers to domicile a fund in Germany or Ireland to market in the E.U. The first article
in the series analyzed Brexit’s impact on structuring considerations, as well as the viability of domiciling funds in Luxembourg to access E.U. markets. For further commentary from Dechert attorneys, see “The Current State of Direct Lending by Hedge Funds: Fund Structures, Tax and Financing Options
” (Oct. 27, 2016); and “What the Evolving European Marketing Environment Means for Hedge Fund GCs and CCOs
” (Nov. 12, 2015).