As the deadline for the implementation of the Alternative Investment Fund Managers Directive looms, one would think Europe’s largest alternative funds markets would be ready and raring to go. In reality, things are only just getting started.

The AIFMD regulates all alternative sectors, including hedge funds, real estate and private equity, as well as traditional sectors where funds are not registered as undertakings for collective investment in transferable securities. It implements a markets regime whereby European Union alternative investment fund managers with a 'passport' will be able to sell their funds cross-border to professional investors.