The Alternative Investment Fund Managers Directive (“AIFMD”) is now effective [as of 22 July 2013]. In conjunction with the AIFMD, the following directly applicable regulations are also now in force, effectively creating 2 new regimes for funds wishing to invest in European Small and Medium Enterprises (“SMEs”):
- Regulation (EU) No. 345/2013 on European venture capital funds (“EuVECA”); and
- Regulation (EU) No. 346/2013 on European social entrepreneurship funds (“EuSEF”).
The main purpose of EuVECA is to provide a common framework for European venture capital funds in order to:
- stimulate economic growth;
- contribute to the creation of jobs and capital mobilisation;
- foster the establishment and expansion of innovative undertakings;
- increase undertakings investment in research and development; and
- to foster entrepreneurship, innovation and competitiveness.
The main purpose of EuSEF is to provide a common framework for European social entrepreneurship funds by providing funding to social undertakings that are acting as drivers of social change by offering solutions to social problems.