It’s All There: Post-AIFMD Fundraising Options in Germany

Summary: There is significant potential for alternative investment fund managers to access Germany’s large base of institutional investors. Despite the recent post-AIFMD challenges—including the abolition of Germany’s pre-AIFMD private placement regime (NPPR) and BaFin’s (the German supervisory authority) restrictive interpretation of reverse solicitation practices—Germany is far from the “impenetrable” jurisdiction for marketing purposes under AIFMD or the KAGB (Kapitalanlagegesetzbuch, the 2013 German implementing legislation) that many clients assume. Not only is it possible for a non-EU fund to become authorized for marketing in Germany to professional and semi-professional investors under the KAGB, it is in fact not as difficult as previously assumed.