Press release: Alternative asset managers call for CMU reforms to be introduced only where demonstrably needed
Published: 25 November 2021
The Alternative Investment Management Association (AIMA) and Alternative Credit Council (ACC) cautiously welcome the Capital Market Union (‘CMU’) initiatives proposed today by the European Commission.
Capital markets play a key role in funding and supporting sustainable economic growth across the EU. These proposals are a signal that the EU is committed to enhancing the role of market-based finance in the European economy.
The much-needed ELTIF reforms, for which AIMA and the ACC advocated, will support greater investment in the real economy and provide European SMEs with a new source of long-term growth capital. The proposals on market data transparency and the new European Single Access Point (‘ESAP’) will increase market transparency and efficiency which is crucial to attracting more investment.
AIFMD is a well-functioning regime and as such should be changed only where absolutely required in order to preserve stability and certainty. The associations support a targeted approach that should not harm investor access to best-in-class products and global financial centres.
Jack Inglis, the CEO of AIMA, commented: “Today’s package has some solid elements in it. The ELTIF proposal has significant improvements to the existing regime and could really open up the market to new sources of capital. Similarly, the proposals for the creation of a consolidated tape in the EU are long overdue. And while we remain concerned about parts of the AIFMD proposals regarding loan funds and investor access to third country expertise, we hope to work with the lawmakers to make those workable for the industry and its investors.”
Hume Brophy [email protected]
The Alternative Investment Management Association (AIMA) is the global representative of the alternative investment industry, with around 2,000 corporate members in over 60 countries. AIMA’s fund manager members collectively manage more than US$2tn in hedge fund and private credit assets. AIMA draws upon the expertise and diversity of its membership to provide leadership in industry initiatives such as advocacy, policy and regulatory engagement, educational programmes and sound practice guides. AIMA works to raise media and public awareness of the value of the industry.
AIMA set up the Alternative Credit Council (ACC) to help firms focused in the private credit and direct lending space. The ACC currently represents over 200 members that manage US$450bn of private credit assets globally.
AIMA is committed to developing skills and education standards and is a co-founder of the Chartered Alternative Investment Analyst designation (CAIA) – the first and only specialised educational standard for alternative investment specialists. AIMA is governed by its Council (Board of Directors).
About the ACC
The Alternative Credit Council (ACC) is a global body that represents asset management firms in the private credit and direct lending space. It currently represents 200 members that manage over US$450bn of private credit assets. The ACC is an affiliate of AIMA and is governed by its own board which ultimately reports to the AIMA Council. ACC members provide an important source of funding to the economy. They provide finance to mid-market corporates, SMEs, commercial and residential real estate developments, infrastructure as well the trade and receivables business. The ACC’s core objectives are to provide guidance on policy and regulatory matters, support wider advocacy and educational efforts and generate industry research with the view to strengthening the sector's sustainability and wider economic and financial benefits.
Alternative credit, private debt or direct lending funds have grown substantially in recent years and are becoming a key segment of the asset management industry. The ACC seeks to explain the value of private credit by highlighting the sector's wider economic and financial stability benefits.