In June 2014, PATRIZIA Denmark A/S founded the subsidiary PATRIZIA Fund Management A/S, which was granted an AIFM licence by the Danish Financial Supervisory Authority (FSA). This enables the company to carry out bot management of property portfolios and risk management on behalf of investors. PATRIZIA Denmark applied for this licence subsequent to the EU’s Alternative Investment Fund Manager Directive, which legislates for managers of alternative investment funds.
The Directive has been implemented in Denmark via the Danish Alternative Investment Fund Management Act (AIFM Act), which was implemented on 22 July 2013. The Directive imposes a number of requirements on managers of alternative investment funds, who were not previously subject to financial regulation and supervision.
Taken together, this means that companies, which manage assets in excess of EUR 100 million (and in special cases EUR 500 million) on behalf of a number of investors are now subject to conduct regulation and monitoring by the Danish FSA.
The Danish AIFM licence is part of PATRIZIA’s Pan-European strategy for offering an investment platform that enables local and international investors to establish property investment funds in that country, which makes most sense for the business case in question.
With licences in a number of different European countries, PATRIZIA is able to handle and manage large international funds across national boundaries thanks to the company’s in-depth knowledge and experience of the Directive and its streamlined processes.