Private Equity and Venture Capital Funds

Since July 22, 2013, private equity and venture capital funds have been subject to comprehensive regulation. The European Alternative Investment Fund Managers (AIFM) directive requires EU mem-ber-states to subject previously unregulated, so-called alternative investment funds to strict regulato-ry provisions. German lawmakers implemented the European requirements in the Capital Investment Act (Kapitalanlagegesetzbuch/KAGB), which has been in effect since 7/22/2013. The Regulation on European Venture Capital Funds also came into effect on 7/22/2013.