By: Philipp Riedl
On 18 May 2022, the Rapporteur submitted to the Committee on Economic and Monetary Affairs (ECON) a report suggesting changes to the EU Commission’s envisaged regulation of loan originating funds under its proposed AIFMD amendments (AIFMD II). The report includes some proposed relief, notably:
Read MoreBy Kane Barnett
On 1 July 2022 Australia will finally get a new fund vehicle, the corporate collective investment vehicle (CCIV).
Historically, Australian funds have been established as unit trusts or, in the case of certain venture capital funds, limited partnerships. The CCIV is a corporate structure that is intended to be more internationally recognisable than the trust-based fund structure as it is similar to the equivalent structure in other key fund jurisdictions such as the United Kingdom, Cayman Islands, Singapore and Hong Kong.
Read MoreBy: C. Todd Gibson
Last year, a number of lawsuits were filed against SPACs and their sponsors challenging (in part) their status under the U.S. Investment Company Act of 1940 (“1940 Act”) arguing that SPACs are essentially unregistered investment companies. A brief filed by two professors supported this notion on the basis that SPACs typically hold government securities until a target company is acquired (and thus, such SPACs are investment companies required to be registered). In an unusual move to provide SPAC market participants with some comfort on this issue, a number of law firms joined together refuting this position in a joint public statement outlining legal practioners’ historic view that SPACs are not investment companies.
Read MoreBy: Yasho Lahiri
Continuation funds exist because closed-end funds are better suited to a perfect world than an imperfect one.
In a perfect world, as a closed-end fund nears the end of its term, the few remaining portfolio companies the fund owns are ready for sale at attractive prices. The sales happen. Proceeds from the sales wind their way through the fund waterfall to grateful limited partners and successful sponsors. The fund is wound up just as its term comes to an end.
Read MoreBy: Jim Bulling and Cathy Ma
Legislation Passes Parliament
The Australian Federal Government passed the long-awaited Corporate Collective Investment Vehicle Framework and Other Measures Bill 2021 on 10 February 2022. The new regulatory and tax framework for Corporate Collective Investment Vehicles (CCIV) will commence on 1 July 2022.
This reform is a welcome step forward for the Australian funds management industry and is aimed at increasing the competitiveness and familiarity of Australian investment offerings to offshore investors.
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