New disclosure obligations for management companies of private equity funds which acquire control of non-listed companies

New disclosure obligations for management companies of private equity funds which acquire control of non-listed companies

Abstract:

Among the many changes that have been brought about by Directive 2011/61/EU on alternative investment fund managers (referred to in English as “AIFMD”), one that particularly stands out is the duty of managers to inform and report when their managed funds acquire control of a company, particularly when it is not listed. The AIFMD seeks to enable national authorities, the companies themselves, their employees and the rest of shareholders to assess how the fund being in control may impact their situation. To such end, the AIFMD has established a transparency regimen which must be complied with, among others, by managers of private equity funds in accordance with Law 22/2014, of 12 November, which regulates private equity funds, other closed collective investment entities and management companies of closed collective investment entities (“Law 22/2014”).

Keywords: private equity, disclosure, investment, control, non-listed companies