AIFMD & The Professional Guarantee

The Alternative Investment Fund Managers Directive (“AIFMD”) became effective on July 22, 2013. The Directive introduces a new system for the marketing of alternative investment funds (“Funds”) in the EU and creates a legal framework to monitor and supervise alternative investment fund managers. Alternative Investment Fund Managers are now responsible for establishing and maintaining appropriate procedures concerning the valuation of assets in an Alternative Investment Fund (“Fund”).

Within the AIFMD, the European Commission outlines certain requirements to which the external valuer must adhere. For example, the external valuer may not further delegate its responsibilities once it has been engaged by a Fund. Of equal importance is the professional guarantee to be provided by the external valuer to the Fund which serves as a demonstration of its ability to perform the valuation function.

Houlihan Capital will provide a professional guarantee in a signed written statement confirming the following:

  • Sufficient personnel and technical resources are available to perform an independent valuation of the Fund’s assets;
  • Adequate procedures are in place to ensure that the valuations are being performed in an independent and proper manner;
  • The firm and its professionals have adequate knowledge and understanding of both the Fund's investment strategy and the assets that the firm has been appointed to value; and
  • The firm has a sufficiently good reputation and sufficient experience with valuation.

Related Articles

  • Valuation within the Alternative Investment Fund Manager Directive
  • AIFMD - Professional Guarantee Requirement of External Valuer
  • AIFMD Requirements for Non-EU Managers