Federal Cabinet

AIFM reform on the HomeStretch of closed-end funds gain attractiveness of the way to the new investment code (KAGB), which will enter into force on 22 July 2013, is paved. In particular the initiators of closed-end Fund and interested investors of this attractive and future fully regulated segment likely to breathe. Compared to the discussion draft of the law on the implementation of the AIFM directive published on July 18, 2012, some major substantive revisions were made after inclusion of many experts. The resulting draft was adopted by the Federal Cabinet on December 12, 2012 and offers a good balance between sensible investor protection, entrepreneurial freedom and the promotion of the economic and investment location Germany. Contrary to the first provided very restrictive list of permissible asset classes the imposition of closed investments in container, private equity, forest and rail logistics will be possible in the future. Due to the still recording allowed innovative Investment objects can initiators will respond to the transformation of the market environment and provide valuable pacemaker stimuli for the real economy.

Very strong and unrealistic restrictions on the debt ratio to no more than 30 percent was revised and replaced by a permitted debt/asset ratio by now 60 percent. Adapted to the needs of the market was also the freedom of choice of investors with regard to the number of objects within a closed-end Fund. So, a object funds contrary to the versions of the original discussion draft should remain possible. Risk-mixed funds are finally defined. Closed participation gets sufficiently diversified this attribute, or the risk in some other form if she invested in at least three things. Apply to all non-risk-mixed fund future minimum drawing sums amounting to 20,000 euros. More main points of the new implementation of AIFM rules are the introduction of an alternative depositary in addition to the custodian banks as well as the substantive Revision of the transition process after entry into force of the Act.