Master legal developments

The regulatory agenda is showing no sign of slowing down with distribution, private debt and ESG taking centre stage. After Brexit, fund managers must now comply with pre-marketing rules and more prescriptive requirements on marketing communications. The prospect of getting the “retailisation” of AIF products finally on track through the revamped ELTIF regulation is expected to meet strong demand and the AIFMD 2 proposal is more an evolution than a revolution. Certain provisions targeting private debt were met with a sense of scepticism, particularly the requirement for AIFs to be closed-ended when over 60% of their net assets are originated loans. Most private debt funds are closed-ended so we expect a moderate impact. However, one segment of the market targets more liquid/short term loans and offers redemption windows. This business model is now at risk in the long run. Private debt being expected to soon overtake real estate as the second strategy in terms of AuM, lobbying efforts are underway to accompany this trend.

Be up to date on market trends

Keeping up with market trends is key in providing the highest quality of service to our clients. In this respect, we observe a continued focus on ESG, particularly as investors see this as a primary factor in selecting funds. ESG adoption is increasing with managers trying to find solutions to meet investors’ demands. The major remaining challenge is the lack of high-quality data, whereas the implementation timelines for SFDR and the EU Taxonomy are incredibly tight. This is an opportunity for firms developing ESG solutions. AI will become key in helping investors and asset managers collect and analyse ESG data. Similarly, an increasing number of fintech solutions are being developed to improve the operating model of asset managers, distribution intermediaries and service providers. Online investment platforms are emerging, bringing new capital rising opportunities although not without new challenges.

Answer funds sophistication with an integrated approach

Fund structures are becoming more complex, especially in the AIF segment and service providers must adapt to this trend, which is not expected to slow down, in addition to the sector consolidation. More than ever, fund formation requires a holistic approach where legal, regulatory and tax aspects are intertwined. Loyens & Loeff’s investment management practice has this integrated model at its core and comprises of fund formation, fund finance and tax experts working seamlessly to serve our clients.

Keep people happy

After two years of homeworking, millions of people have quit their jobs. This 'great resignation’ has propelled the need for a safer and more inclusive workplace environment. Service providers, including law firms have suffered a sharp rise in the number of resignations in the past year. But people have not stopped working; they are just looking for something more in line with their values. Therefore, keeping talents means adapting to this new reality. At Loyens & Loeff we put people at the heart of our business and have undertaken concrete and proactive measures to adapt to the changing expectations.

For more informations: