Ocorian: European ESG regulation is proving to be a problem for North American fund managers

Ocorian: European ESG regulation is proving to be a problem for North American fund managers

2 juli 2024

Alternatives Verenigde Staten
Stop Halt (Inproperstyle, Pixabay)

99% of North America alternative fund managers say European ESG regulation is a deterrent to try to raise capital in Europe.

‘North American fund managers say the regulatory environment is the biggest obstacle to successful fundraising in Europe, with European ESG regulation in particular being a deterrent,’ Ocorian concludes from its recent study with private equity, private debt, real estate, venture capital and infrastructure fund management executives in the US and Canada responsible for $1.591 trillion AOM. It found ‘the top three biggest challenges to successful fundraising in Europe was the regulatory environment (49%), followed by issues around reporting (38%) and joint third was the liquidity profile (37%) and corporate governance requirements (37%).’

‘European ESG regulation in particular is proving to be a problem in the eyes of North American fund managers. Almost all (99%) say European ESG regulation is a deterrent to North American alternative fund managers trying to raise capital in Europe. Of these, over a third (36%) say it’s a huge deterrent.  Similarly, almost all (97%) of North American fund managers say it will become harder to launch new funds in Europe unless they have a strong ESG focus. Of these, more than one in ten (11%) strongly agree with this view.

These views are having an impact on the types of European investors who are interested in new fund raising by North American fund managers over the next 12 months. Of those surveyed, 77% say they predict an increase in the level of new fundraising by North American fund managers among private banks, followed by 76% expecting an increase from pension funds. This is followed by insurers (69%) and wealth managers (67%) respectively.’

Gerelateerde berichten