Historically, it has been observed a proliferation of benchmarking tools for private equity. The Regulation will declassify them, in most of the cases, to mere comparison statistics leaving current and prospective investors in the asset class segment without an underlying objective benchmarking reference.
Any undertaking that manages a Private Equity or Venture Capital fund is classified as supervised entity under the BMR regulation in that it comes within the scope of the AIFM (alternative investment fund managers) directive to the extent the fund it manages meets the directive’s definition of an AIF. The directive requires that every AIF has a single fund manager to manage the fund.
The EU BMR Regulation paves the way for a win-win case for both investors and General Partners, who can find in new compliant benchmarks, respectively, a tool for better and safer access to the asset class and the opportunity to broaden the market for their funds, to possibly include all retail investment savings and retirement solutions.
The BMR white paper aims to answer common questions that a PE manager or investor may have in terms of the impact of the directive on the way business is conducted and how private market investments are effected. By the end of the white paper, you will have a better understanding of the impact of BMR on the private markets.