The MoFo Private Funds Group knows you are busy so we don't waste your time. Below are the tracks we are listening to right now – and why they matter:
Bringing a KID to market
As of 1 January 2018: (1) most investment funds are now seen as packaged retail and insurance-based investment products (PRIIPs) and (2) prior to admitting a retail investor into a fund, a highly technical Key Information Document (KID) must be produced. A KID must include prescribed information outlining the key features of an investment into the fund and must be updated as long as the fund is marketed to retail investors. Retail investors encompass a broad range of people (including high-net worth individuals and small corporate entities). However, retail clients who know the score (and fulfil stringent criteria) may "opt up" to professional client status. Fund managers should be wary and know when to bring their KIDs to market.
Tune in to the FCA's PRIIPs description and the prescribed information in the KID regulation.
Feel the beat of 2017
In 2017, 79 first time funds were raised, contributing to total fundraisings of £33bn. Of this, £770m came from venture capital fundraising, and £330m from growth capital fundraising. Leading the charge on venture capital investment were private individuals (34%), government agencies (15%) and capital markets and corporate investors (13%). On growth capital, the leading lights were pension funds (29%) and government agencies (21%). These are only some of the latest heartening statistics from the annual investment activity report composed by the BVCA.
The report also includes, amongst other things, data on total investments and divestments in 2017. Tune in here for information direct from its source.
European foreign investment control – let's harmonise
Foreign investment control regimes work to screen investment activities that pose risks to national security. The UK, Germany, France and, more broadly, the European Union, are working on reforming the rules to keep in line with modern demands, including widening the range and scale of investments that might be caught. The UK proposes to put in place a clear, predictable process intended to apply to a small number of critical investment activities. German reforms are reportedly expected to lower the threshold for investment activities caught by the relevant rules, and French reforms purport to expand not only the government's range of powers, but also its sector reach (including into robotics and massive data storage). Later this year, the EU is expecting to finalise a new scheme which will allow the EU Commission to screen and opine on foreign investments, and will provide for a cooperation mechanism to facilitate harmonisation between national governments and the EU Commission.
Tune in to MoFo's very own client briefing which summarises the tone.
Bonus Track
Now that doors have opened on the GDPR, let our GDPR Checklist be your set list for implementation.
Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.
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