{"id":43931,"date":"2017-11-26T16:18:32","date_gmt":"2017-11-26T14:18:32","guid":{"rendered":"https:\/\/newserver.fyb.de\/produkt\/european-regulation-for-private-equity-yes-but-how\/"},"modified":"2017-11-26T16:18:32","modified_gmt":"2017-11-26T14:18:32","slug":"european-regulation-for-private-equity-yes-but-how","status":"publish","type":"product","link":"https:\/\/www.fyb.de\/en\/produkt\/european-regulation-for-private-equity-yes-but-how\/","title":{"rendered":"European regulation for private equity \u2014 yes, but how?"},"content":{"rendered":"

Dr. Chris\u00adtoph von Einem<\/strong> \u2014 Attor\u00adney at Law and Part\u00adner of the law firm White & Case LLP, Munich Lectu\u00adrer for Entre\u00adpre\u00adneur\u00adship & Law at the Tech\u00adni\u00adcal Univer\u00adsity of Munich<\/p>\n","protected":false},"excerpt":{"rendered":"

At the latest since the Lehmann bank\u00adruptcy and the open outbreak of the finan\u00adcial crisis, it has become clear that the venture capi\u00adtal and private equity indus\u00adtry, which is not respon\u00adsi\u00adble for this crisis but has taken advan\u00adtage of the banks\u2019 free\u00addom of move\u00adment in gran\u00adting acqui\u00adsi\u00adtion loans to engage in some\u00adti\u00admes exces\u00adsive lever\u00adaging and recaps, can no longer avoid Europe-wide regu\u00adla\u00adtion. The criti\u00adcal ques\u00adtion is what such regu\u00adla\u00adtion will look like, or should look like in a meaningful way.<\/strong><\/p>\n

In April 2009, as part of the G20 group\u2019s effort to create a more stable global finan\u00adcial order, the Euro\u00adpean Commis\u00adsion presen\u00adted a propo\u00adsal to regu\u00adlate all Alter\u00adna\u00adtive Invest\u00adment Fund Mana\u00adgers (AIFM Direc\u00adtive). This direc\u00adtive is inten\u00added to subject all mana\u00adgers of alter\u00adna\u00adtive invest\u00adment funds, which include in parti\u00adcu\u00adlar hedge funds, private equity and venture capi\u00adtal funds, mezza\u00adnine funds and other fund vehic\u00adles laun\u00adched by private provi\u00adders, to uniform super\u00advi\u00adsion throug\u00adhout Europe.<\/p>\n

Why do we suppo\u00adsedly need Europe-wide regulation?<\/strong><\/p>\n

In addi\u00adtion to the banks, hedge funds and private equity funds in parti\u00adcu\u00adlar were held respon\u00adsi\u00adble by poli\u00adti\u00adci\u00adans for caus\u00ading the finan\u00adcial crisis. Poli\u00adti\u00adci\u00adans assume that the opera\u00adtion of such funds crea\u00adtes a \u201csyste\u00admic risk\u201d that urgen\u00adtly requi\u00adres state regu\u00adla\u00adtion. While it is obvious that the rating agen\u00adcies failed in the run-up to the finan\u00adcial crisis and that many banks had too little equity capi\u00adtal and, in parti\u00adcu\u00adlar, too many risky credit expo\u00adsures, hedge funds were criti\u00adci\u00adzed for having accu\u00admu\u00adla\u00adted very high default risks through short selling, equity borro\u00adwing and lever\u00ada\u00adged finan\u00adcing of their corpo\u00adrate holdings at the fund level. In contrast, this was not the case for private equity funds, as private equity and venture capi\u00adtal funds make their equity invest\u00adments at fund level exclu\u00adsi\u00advely from the equity coll\u00adec\u00adted from investors.<\/p>\n","protected":false},"featured_media":40985,"comment_status":"open","ping_status":"closed","template":"","meta":{"wp_typography_post_enhancements_disabled":false},"product_brand":[],"product_cat":[2452,2511,2516],"product_tag":[1759,1823,1828,1833,1837],"class_list":{"0":"post-43931","1":"product","2":"type-product","3":"status-publish","4":"has-post-thumbnail","6":"product_cat-ebook-en","7":"product_cat-fyb-2010-2","8":"product_cat-prof-dr-christoph-von-einem-en","9":"product_tag-christoph-von-einem-en","10":"product_tag-lehmann-bankruptcy","11":"product_tag-leveraging-en","12":"product_tag-recaps-en","13":"product_tag-acquisition-credit","14":"pa_sprache-english-3","15":"pa_sprache-german","17":"first","18":"outofstock","19":"taxable","20":"shipping-taxable","21":"purchasable","22":"product-type-variable"},"yoast_head":"\nEuropean regulation for private equity - yes, but how? - FYB Financial Yearbook<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.fyb.de\/en\/produkt\/european-regulation-for-private-equity-yes-but-how\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"European regulation for private equity - yes, but how? - FYB Financial Yearbook\" \/>\n<meta property=\"og:description\" content=\"At the latest since the Lehmann bankruptcy and the open outbreak of the financial crisis, it has become clear that the venture capital and private equity industry, which is not responsible for this crisis but has taken advantage of the banks' freedom of movement in granting acquisition loans to engage in sometimes excessive leveraging and recaps, can no longer avoid Europe-wide regulation. The critical question is what such regulation will look like, or should look like in a meaningful way. In April 2009, as part of the G20 group's effort to create a more stable global financial order, the European Commission presented a proposal to regulate all Alternative Investment Fund Managers (AIFM Directive). This directive is intended to subject all managers of alternative investment funds, which include in particular hedge funds, private equity and venture capital funds, mezzanine funds and other fund vehicles launched by private providers, to uniform supervision throughout Europe. Why do we supposedly need Europe-wide regulation? In addition to the banks, hedge funds and private equity funds in particular were held responsible by politicians for causing the financial crisis. Politicians assume that the operation of such funds creates a "systemic risk" that urgently requires state regulation. While it is obvious that the rating agencies failed in the run-up to the financial crisis and that many banks had too little equity capital and, in particular, too many risky credit exposures, hedge funds were criticized for having accumulated very high default risks through short selling, equity borrowing and leveraged financing of their corporate holdings at the fund level. In contrast, this was not the case for private equity funds, as private equity and venture capital funds make their equity investments at fund level exclusively from the equity collected from investors.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.fyb.de\/en\/produkt\/european-regulation-for-private-equity-yes-but-how\/\" \/>\n<meta property=\"og:site_name\" content=\"FYB Financial Yearbook\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.fyb.de\/wp-content\/uploads\/2017\/07\/Einem.png\" \/>\n\t<meta property=\"og:image:width\" content=\"334\" \/>\n\t<meta property=\"og:image:height\" content=\"298\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.fyb.de\/en\/produkt\/european-regulation-for-private-equity-yes-but-how\/\",\"url\":\"https:\/\/www.fyb.de\/en\/produkt\/european-regulation-for-private-equity-yes-but-how\/\",\"name\":\"European regulation for private equity - yes, but how? - FYB Financial Yearbook\",\"isPartOf\":{\"@id\":\"https:\/\/www.fyb.de\/en\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.fyb.de\/en\/produkt\/european-regulation-for-private-equity-yes-but-how\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.fyb.de\/en\/produkt\/european-regulation-for-private-equity-yes-but-how\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.fyb.de\/wp-content\/uploads\/2017\/07\/Einem.png\",\"datePublished\":\"2017-11-26T14:18:32+00:00\",\"breadcrumb\":{\"@id\":\"https:\/\/www.fyb.de\/en\/produkt\/european-regulation-for-private-equity-yes-but-how\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.fyb.de\/en\/produkt\/european-regulation-for-private-equity-yes-but-how\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.fyb.de\/en\/produkt\/european-regulation-for-private-equity-yes-but-how\/#primaryimage\",\"url\":\"https:\/\/www.fyb.de\/wp-content\/uploads\/2017\/07\/Einem.png\",\"contentUrl\":\"https:\/\/www.fyb.de\/wp-content\/uploads\/2017\/07\/Einem.png\",\"width\":334,\"height\":298},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.fyb.de\/en\/produkt\/european-regulation-for-private-equity-yes-but-how\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.fyb.de\/en\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"FYB Shop\",\"item\":\"https:\/\/www.fyb.de\/en\/shop\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"European regulation for private equity \u2014 yes, but how?\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.fyb.de\/en\/#website\",\"url\":\"https:\/\/www.fyb.de\/en\/\",\"name\":\"FYB Financial Yearbook\",\"description\":\"For Your Business\",\"publisher\":{\"@id\":\"https:\/\/www.fyb.de\/en\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.fyb.de\/en\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/www.fyb.de\/en\/#organization\",\"name\":\"FYB Financial Yearbook\",\"url\":\"https:\/\/www.fyb.de\/en\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.fyb.de\/en\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/www.fyb.de\/wp-content\/uploads\/2020\/06\/logo.svg\",\"contentUrl\":\"https:\/\/www.fyb.de\/wp-content\/uploads\/2020\/06\/logo.svg\",\"caption\":\"FYB Financial Yearbook\"},\"image\":{\"@id\":\"https:\/\/www.fyb.de\/en\/#\/schema\/logo\/image\/\"}}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"European regulation for private equity - yes, but how? - FYB Financial Yearbook","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.fyb.de\/en\/produkt\/european-regulation-for-private-equity-yes-but-how\/","og_locale":"en_US","og_type":"article","og_title":"European regulation for private equity - yes, but how? - FYB Financial Yearbook","og_description":"At the latest since the Lehmann bankruptcy and the open outbreak of the financial crisis, it has become clear that the venture capital and private equity industry, which is not responsible for this crisis but has taken advantage of the banks' freedom of movement in granting acquisition loans to engage in sometimes excessive leveraging and recaps, can no longer avoid Europe-wide regulation. The critical question is what such regulation will look like, or should look like in a meaningful way. In April 2009, as part of the G20 group's effort to create a more stable global financial order, the European Commission presented a proposal to regulate all Alternative Investment Fund Managers (AIFM Directive). This directive is intended to subject all managers of alternative investment funds, which include in particular hedge funds, private equity and venture capital funds, mezzanine funds and other fund vehicles launched by private providers, to uniform supervision throughout Europe. Why do we supposedly need Europe-wide regulation? In addition to the banks, hedge funds and private equity funds in particular were held responsible by politicians for causing the financial crisis. Politicians assume that the operation of such funds creates a \"systemic risk\" that urgently requires state regulation. While it is obvious that the rating agencies failed in the run-up to the financial crisis and that many banks had too little equity capital and, in particular, too many risky credit exposures, hedge funds were criticized for having accumulated very high default risks through short selling, equity borrowing and leveraged financing of their corporate holdings at the fund level. In contrast, this was not the case for private equity funds, as private equity and venture capital funds make their equity investments at fund level exclusively from the equity collected from investors.","og_url":"https:\/\/www.fyb.de\/en\/produkt\/european-regulation-for-private-equity-yes-but-how\/","og_site_name":"FYB Financial Yearbook","og_image":[{"width":334,"height":298,"url":"https:\/\/www.fyb.de\/wp-content\/uploads\/2017\/07\/Einem.png","type":"image\/png"}],"twitter_card":"summary_large_image","schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.fyb.de\/en\/produkt\/european-regulation-for-private-equity-yes-but-how\/","url":"https:\/\/www.fyb.de\/en\/produkt\/european-regulation-for-private-equity-yes-but-how\/","name":"European regulation for private equity - yes, but how? - FYB Financial Yearbook","isPartOf":{"@id":"https:\/\/www.fyb.de\/en\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.fyb.de\/en\/produkt\/european-regulation-for-private-equity-yes-but-how\/#primaryimage"},"image":{"@id":"https:\/\/www.fyb.de\/en\/produkt\/european-regulation-for-private-equity-yes-but-how\/#primaryimage"},"thumbnailUrl":"https:\/\/www.fyb.de\/wp-content\/uploads\/2017\/07\/Einem.png","datePublished":"2017-11-26T14:18:32+00:00","breadcrumb":{"@id":"https:\/\/www.fyb.de\/en\/produkt\/european-regulation-for-private-equity-yes-but-how\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.fyb.de\/en\/produkt\/european-regulation-for-private-equity-yes-but-how\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.fyb.de\/en\/produkt\/european-regulation-for-private-equity-yes-but-how\/#primaryimage","url":"https:\/\/www.fyb.de\/wp-content\/uploads\/2017\/07\/Einem.png","contentUrl":"https:\/\/www.fyb.de\/wp-content\/uploads\/2017\/07\/Einem.png","width":334,"height":298},{"@type":"BreadcrumbList","@id":"https:\/\/www.fyb.de\/en\/produkt\/european-regulation-for-private-equity-yes-but-how\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.fyb.de\/en\/"},{"@type":"ListItem","position":2,"name":"FYB Shop","item":"https:\/\/www.fyb.de\/en\/shop\/"},{"@type":"ListItem","position":3,"name":"European regulation for private equity \u2014 yes, but how?"}]},{"@type":"WebSite","@id":"https:\/\/www.fyb.de\/en\/#website","url":"https:\/\/www.fyb.de\/en\/","name":"FYB Financial Yearbook","description":"For Your Business","publisher":{"@id":"https:\/\/www.fyb.de\/en\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.fyb.de\/en\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/www.fyb.de\/en\/#organization","name":"FYB Financial Yearbook","url":"https:\/\/www.fyb.de\/en\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.fyb.de\/en\/#\/schema\/logo\/image\/","url":"https:\/\/www.fyb.de\/wp-content\/uploads\/2020\/06\/logo.svg","contentUrl":"https:\/\/www.fyb.de\/wp-content\/uploads\/2020\/06\/logo.svg","caption":"FYB Financial Yearbook"},"image":{"@id":"https:\/\/www.fyb.de\/en\/#\/schema\/logo\/image\/"}}]}},"_links":{"self":[{"href":"https:\/\/www.fyb.de\/en\/wp-json\/wp\/v2\/product\/43931","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.fyb.de\/en\/wp-json\/wp\/v2\/product"}],"about":[{"href":"https:\/\/www.fyb.de\/en\/wp-json\/wp\/v2\/types\/product"}],"replies":[{"embeddable":true,"href":"https:\/\/www.fyb.de\/en\/wp-json\/wp\/v2\/comments?post=43931"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.fyb.de\/en\/wp-json\/wp\/v2\/media\/40985"}],"wp:attachment":[{"href":"https:\/\/www.fyb.de\/en\/wp-json\/wp\/v2\/media?parent=43931"}],"wp:term":[{"taxonomy":"product_brand","embeddable":true,"href":"https:\/\/www.fyb.de\/en\/wp-json\/wp\/v2\/product_brand?post=43931"},{"taxonomy":"product_cat","embeddable":true,"href":"https:\/\/www.fyb.de\/en\/wp-json\/wp\/v2\/product_cat?post=43931"},{"taxonomy":"product_tag","embeddable":true,"href":"https:\/\/www.fyb.de\/en\/wp-json\/wp\/v2\/product_tag?post=43931"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}