Reuters: European private equity warns of U.S. trade war

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European private equity warns of U.S. trade war

The European private equity industry is warning that a trade war over access to capital could erupt between the United States and Europe unless key changes are made to the European alternative investments directive. The draft directive published in April proposes measures requiring managers of funds to register, submit data, limit leverage and, critically for the private industry, makes non-EU managers meet certain requirements in order to be able to offer their funds within European member states. "It's crazy to start erecting what the U.S. will see as capital barriers to raising money in Europe," said Simon Havers, chief executive of private equity firm Baird Capital Partners Europe and chairman of the British Private Equity and Venture Capital Association (BVCA).

Note EU-Digest:The fact that the private equity industry is worried should be an indication that the European alternative investment directive is an effective means in combating established irregularities in the present system and must be adopted.