Ocorian: North American fund managers focus on passporting for European fund raising

Ocorian: North American fund managers focus on passporting for European fund raising

Vermogensbeheer Europa Verenigde Staten

North American fund managers plan to create European funds and then use the passport to raise funds in Europe ahead of reverse solicitation and National Private Placement Regimes (NPPR), new research from Ocorian, a global leader in fund administration, capital markets, corporate and fiduciary services shows.

More than two out of five (41%) selected passporting for fund raising in Europe going forward, Ocorian’s study with private equity, private debt, real estate, venture capital and infrastructure fund management executives in the US and Canada responsible for $1.591 trillion assets under management found. That compares with 25% selecting NPPR and the same number opting for reverse solicitation as their preferred methods for fund raising in the study out of passporting, reverse solicitation, and NPPR. 

The study found 61% will use placement agents to raise capital in Europe in the next 18 months with nearly half (49%) also using direct sales teams and 47% relying on third party distributors. Around 28% will use private banks.

The research found 82% of North American fund managers are likely to increase pre-marketing activity in Europe over the next two years with 73% saying it is much more or more attractive to pre-market in Europe due to the lower initial investment before fully setting up.

However, the study found varying levels of understanding of pre-marketing changes made in Europe in June 2021 which included specific changes to the cross-border distribution of collective investment funds under AIFMD and UCITS Directives in the EU. Just 38% said they understood them very well while 58% said they understood the changes quite well.