Risk Retention Requirements Under the AIFMD: a Difference in Approach

EU alternative investment fund managers (AIFMs) investing in securitisation transactions (eg, CMBS or other tranched deals) will become subject to a 5% risk retention requirement, along with due diligence requirements, under the AIFM Directive. Given the breadth of the definition of “securitisation”, these requirements may apply in situations where AIFMs do not expect them to do so. This article examines the relevant requirements.