Marketing Foreign Investment Funds in Germany
Investment fund managers domiciled outside Germany must comply with specific regulatory requirements to market their investment funds in Germany.
A fund manager domiciled within the European Economic Area (EEA) can make use of the European AIFMD passport regime, if it intends to market an alternative investment fund (AIF) to German professional or semi-professional investors—with the latter category being unique to German law and not derived from the AIFMD. Marketing AIFs to retail investors is permitted under the German national private placement regime, which imposes the highest regulatory standards. Please refer to the Handbook on Marketing Foreign EU/EEA Alternative Investment Funds (AIF) in Germany for more information.
A fund manager domiciled outside the EEA can neither rely on the European AIFMD passport regime nor the European third-country passport regime. The latter regime has not been enacted yet and is unlikely to be enacted in the near future. However, foreign non-EEA investment fund mangers can utilise the German national private placement regime to gain access to the market. The scope and intensity of regulatory requirements also depend on the type of investment fund and the type of investor targeted, with the regulatory burden being lowest for professional investors, moderate for semi-professional investors, and highest for retail investors. Please refer to the Handbook on Marketing Foreign Non-EU/Non-EEA Alternative Investment Funds (AIF) in Germany for more information.
The German law firm Kronsteyn assists asset managers in determining whether its specific activities fall under German regulatory law and finds solutions that fit to the intended business model. Kronsteyn also guides through the BaFin marketing notification procedure to ensure compliance with German regulations. Please refer to Hendrik Müller-Lankow for any queries.
German National Private Placement Regime (NPPR) provides rules for AIFM not domiciled in EU/EEA that intend to market an AIF in Germany.
Originating loans in Germany generally requires a BaFin license, if the foreign investment manager cannot rely on a specific exemption.