ABSTRACT
To improve investor protection and investors' interest in the market for alternative investment funds (AIFs), the European Union (EU) issued the Alternative Investment Fund Manager Directive (AIFMD) in 2010. One of the goals of the AIFMD was to set rules that permit provision and marketing of financial services relating to AIFs in the common market. However, there are no empirical assessments on how the AIFMD relates to cross-border private equity (PE) fund flows in the EU market. This chapter addresses this gap in the literature. First, we review how the market for PE is regulated in the EU. Second, we use data from the European PE market to assess whether the goal of improved cross-border marketing of PE funds set out in the AIFMD manifested itself between 2007 and 2019. Our main finding is that the AIFMD does not appear to be associated with cross-border PE fund flows.
