EuSEF & EuVECA Update

Firms involved in, or considering, the management of Social Entrepreneurship and Venture Capital Funds may be interested to learn that ESMA has updated its Q&A on the application of the Regulations. Those not familiar with the concept of these funds can access a brief summary, together with links to the relevant Regulations, in Regulatory Roundup 47 and 48.

The Q&A now confirms (Q1b) that an AIFM above the €500M threshold of Article3(2)(b) of the AIFMD is also entitled to manage and market EuSEF and EuVECA – in the previous version only the situation of a below threshold manager that subsequently exceeded this threshold was addressed. Question 1c clarifies which provisions will apply to AIFMs above the threshold and that in terms of marketing, the EuVECA & EuSEF provisions prevail over those of the AIFMD. As such, AIFMs above the Article 3(2)(b) threshold can market to retail clients that comply with the Article 6 requirements (minimum commitment of €100,000 and stating in writing that they are aware of the risks associated with such an investment).

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