Regulation biggest challenge to capital raising, Ocorian says
12 July 2023 UK
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Fund services provider Ocorian has published new research suggesting the biggest hurdle to successful fundraising for alternative asset class funds is the current regulatory environment.
Based on responses from alternative fund managers across the UK, US and Europe, the study found that issues around reporting, alternative fund managers’ liquidity profile, and the availability of assets were respectively the second, third, and fourth largest issues.
Ocorian says these findings land amid global regulatory burdens, impending changes to existing regulation, and increased scrutiny from regulators over sustainability practices and reporting. It found that the current economic climate also presented a significant barrier for alternative asset managers that wish to raise capital.
The study also investigated alternative fund manager’s preferred methods of raising capital in current regulatory conditions.
Respondents identified private placement as their most important source of funding, with 83 per cent of those planning to raise capital in the coming 18 months likely to employ this source of finance.
Based on responses from alternative fund managers across the UK, US and Europe, the study found that issues around reporting, alternative fund managers’ liquidity profile, and the availability of assets were respectively the second, third, and fourth largest issues.
Ocorian says these findings land amid global regulatory burdens, impending changes to existing regulation, and increased scrutiny from regulators over sustainability practices and reporting. It found that the current economic climate also presented a significant barrier for alternative asset managers that wish to raise capital.
The study also investigated alternative fund manager’s preferred methods of raising capital in current regulatory conditions.
Respondents identified private placement as their most important source of funding, with 83 per cent of those planning to raise capital in the coming 18 months likely to employ this source of finance.
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