A recent article in the Financial Times, "Venture Capitalists Count Costs of EU Diktats to Funds" discusses the impact of regulation, primarily Basel III and Solvency II, on investment in VC funds by pension funds, insurers and banks. Here's the link (behind firewall): http://www.ft.com/intl/cms/s/0/6440741e-ff2d-11e0-9769-00144feabdc0.html#axzz1cPLr2DFB.
The article indicates that investment in European VC funds has fallen since the regulations have been implemented, but adds that other factors, such as poor returns for average funds and long holding periods, may have compounded the problem. The article then discusses proposed regulations that might ease the problem. Overall, I think this is a good read.
The article indicates that investment in European VC funds has fallen since the regulations have been implemented, but adds that other factors, such as poor returns for average funds and long holding periods, may have compounded the problem. The article then discusses proposed regulations that might ease the problem. Overall, I think this is a good read.
