Alternative Asset Management & Sustainability Insights

Key Insights:Policy calm, but fragile: The UK government has engaged constructively with the private capital sector since 2024, but the incoming administration's intentions on capital gains tax and wealth taxes remain unclear.Tax disputes an increasing headache for businesses: The UK tax authority's escalating scrutiny of executive remuneration – reflected in high-profile court victories and an apparent jump in investigations – is presenting financial and operational challenges for the private capital sector.Asymmetry favours the agency: HMRC dictates the pace, scope and terms of enquiries.Links:https://www.ft.com/content/6b8cd156-c5bb-4cce-8c54-818fd19fab96?syn-25a6b1a6=1https://www.traverssmith.com/knowledge/knowledge-container/the-uks-carried-interest-tax-regime/https://www.traverssmith.com/knowledge/knowledge-container/uk-government-proposes-reform-of-taxation-of-llc-members/https://www.traverssmith.com/knowledge/knowledge-container/all-change-for-uk-aifmd

Sustainability issues are manageable: Policymakers and industry initiatives are clearing sustainability obstacles, but – although vital – these are usually not the main obstacle to defence investment in Europe.Due diligence challenges remain: Human rights and end-use risks cannot be fully eliminated, and governments and investors need to work hard to manage them.Commercial hurdles persist: The real barriers are commercial: for example, slow procurement, unclear demand signals, and lack of long-term contracts.Links:https://www.investeurope.eu/publications-policy/publications/2026/model-limited-partnership-agreement-lpa-language-for-defence-dual-use-investment/https://eiriscrn.net/grid/https://www.rusi.org/explore-our-research/publications/insights-papers/private-capital-uk-defencehttps://www.ft.com/content/72878c3e-a4c6-4e4d-86c1-6df11593e4ac?syn-25a6b1a6=1https://www.gov.uk/government/publications/the-defence-investment-planhttps://www.traverssmith.com/knowledge/knowledge-container/backing-british-can-the-uk-become-the-leading-destination-for-defence-investment/

Alternative Insights Summit 2026: In London last week, Travers Smith's clients and friends convened to discuss the key issues of the day in the private markets.Increasing access to private market returns: One theme was the need for UK pension funds to take more advantage of the returns available, while sponsors should approach the wealth market with transparency, good governance – and without over-reliance on potentially fickle capital.Defence is a vital opportunity: With Europe on a war footing, defence offers compelling returns across technology, infrastructure and supply chains – but government must provide faster procurement, clearer contracting and stronger demand signals to mobilise private capital at scale.Links:https://www.traverssmith.com/knowledge/events-container/alternative-insights-summit-2026/

Investors must face reality: A new report argues that a decade of disclosure targets and stewardship has failed to drive real-world decarbonisation, because technology development and government policy – not investor pressure – are the primary determinants of how quickly economies transition.Private markets have real advantages – but clear limits: A sponsors' greater agency over portfolio companies gives private markets a genuine edge, but fiduciary duties mean no manager can pursue climate goals unless it is in the interests of their LPs or consistent with a specific mandate.Policy engagement is the under-used lever: Private markets managers – closer than most to what makes a project financeable – are well placed to tell governments what conditions will attract private capital, and that expertise could be deployed more deliberately, and more often.Links:https://www.fmg.ac.uk/sites/default/files/2026-05/What-Can-Investors-Do-About-Climate-Change_final.pdfhttps://www.edf.org/https://www.lse.ac.uk/global-school-of-sustainabilityhttps://collaborate.unpri.org/group/761/abouthttps://www.bain.com/how-we-help/private-markets-decarbonization-roadmap/

KEY INSIGHTSGovernance creates value: Effective AI governance is not a compliance exercise – for private capital firms, it is a discipline central to value creation, which can be applied as rigorously to their own operations as to their portfolio companies.Humans must stay in control: An effective AI governance framework places human oversight and accountability at its core, with named individuals responsible, clear rules on data and tools, and meaningful review of every AI-generated output.Nimbleness is now essential: As technology, regulation and use cases evolve rapidly, firms must continuously adapt their AI policies – and embed a culture that empowers, even requires, staff to use AI actively while remaining alert to its risks.Links:Corporate governance | OECDResponsible-AI-Quick-Guide-for-Asset-Owners.pdfFCA, Bank of England and Treasury joint statement on frontier AI models and cyber resilience | FCAAnthropic Partners with Blackstone, Hellman & Friedman, and Goldman Sachs to Launch Enterprise AI Services Firm - BlackstoneThe EU AI Act – the current state of play | Travers Smith

KEY INSIGHTSEU is not retreating: Despite framing its agenda as simplification, the EU is rebuilding its environmental product regulation to be more digital, more enforceable and, in several areas, more consequential than before.Environmental regulation offers a strategic opportunity: The EU is recasting product rules as industrial policy, with significant implications for supply chain intensive businesses, among others.Greenwashing and PFAS demand action now: Tougher rules on environmental claims and accelerating litigation risk around forever chemicals mean that consumer-facing and industrials-exposed portfolio companies cannot afford to wait for regulatory certainty before acting.Links:A Simpler, Clearer and Better Enforced EU Rulebook - European CommissionMoving Parts: A Guide to the EU's Evolving Product Regulatory Landscape | Travers SmithEU's Digital Product Passport: Advancing transparency and sustainability | data.europa.euCircular Economy - Environment - European CommissionUpdates to EU CBAM: Balancing climate and competitiveness | Travers SmithAll news - ECHA

Deregulation is gaining ground: On both sides of the Atlantic, regulators are shifting focus toward burden reduction — but concerns about increasing risks are also prominent.Systemic risk concerns are real but manageable: Legitimate questions about hidden credit problems, bank-fund linkages and the widening distribution of private markets products deserve scrutiny — but the risks are being actively monitored, and sophisticated investors are still backing the asset class with conviction.Engage now, but with eyes open: The industry has a rare opportunity to shape a more proportionate regulatory framework in both the EU and UK — but caution is required: history suggests that what enters the legislative process as simplification does not always emerge that way.Links: https://www.traverssmith.com/knowledge/knowledge-container/aifmd-ii-the-next-phase-of-eu-alternative-investment-fund-regulation/https://www.traverssmith.com/knowledge/knowledge-container/eu-retail-investment-directive-and-regulation/https://www.efama.org/newsroom/news/ris-reality-check-why-we-must-hit-pause-retail-investment-strategyhttps://www.traverssmith.com/knowledge/knowledge-container/eu-market-integration-package/https://www.traverssmith.com/knowledge/knowledge-container/buy-side-story-the-fcas-2026-regulatory-priorities-for-the-sector/https://www.traverssmith.com/knowledge/knowledge-container/fca-private-market-valuation-review/https://www.sec.gov/newsroom/press-releases/2026-40-sec-cftc-jointly-propose-amendments-reduce-private-fund-reporting-burdenshttps://www.theguardian.com/business/2025/oct/14/jp-morgan-jamie-dimon-losses-private-credit-sectorhttps://www.ft.com/content/5c9939bf-3c85-43b0-b605-842f24cd8753https://www.bankofengland.co.uk/news/2025/december/boe-launches-system-wide-exploratory-scenario-exercise-focused-on-private-marketshttps://www.fca.org.uk/publication/regulatory-priorities/wholesale-buy-side-report.pdf

EU and UK rules still shifting: The EU's omnibus rollback has narrowed the scope of corporate sustainability reporting, but the standards themselves remain unfinished and last-minute changes to improve alignment with international frameworks could prove contentious.SFDR reform sidelines private markets: Member states are divided on key aspects of the Commission's proposed SFDR overhaul, with engagement as an investment approach, grandfathering and category criteria all contested — and private markets concerns still largely unaddressed.Time to engage is now: Some positive signals are emerging, including Sweden's push to adapt the framework for unlisted assets and calls to extend transition periods, but private markets participants need to act quickly to shape the final rules.Links:https://www.traverssmith.com/knowledge/knowledge-container/the-omnibus-reaches-its-destination-csrd-and-cs3d-20/https://www.responsible-investor.com/eu-weighing-last-minute-move-to-adopt-issb-sustainability-standards/https://www.traverssmith.com/knowledge/knowledge-container/ready-set-report-the-fca-fires-the-starting-gun-on-uk-sustainability-reporting/https://www.traverssmith.com/knowledge/knowledge-container/travers-smiths-sustainability-insights-the-uks-cautious-roll-out/https://www.traverssmith.com/knowledge/knowledge-container/travers-smiths-sustainability-insights-six-fixes-for-sfdr-20/https://data.consilium.europa.eu/doc/document/WK-3931-2026-INIT/en/pdfhttps://www.investeurope.eu/publications-policy/publications/2026/invest-europe-position-paper-on-sfdr-20/https://doi.org/10.1093/jfr/fjac001

In this week's issue of Travers Smith's Alternative Insights, we are looking at non-financial misconduct, and how accountability drives culture.FCA sharpens oversight: The UK regulator is finalising new rules on non-financial misconduct, extending its scrutiny beyond the office and setting clearer standards for personal and workplace behaviour.Manager accountability grows: Managers must actively prevent bullying and harassment, or risk personal liability under the Conduct Rules if they fail to act.Culture change expected: Firms can no longer dismiss poor behaviour as business as usual, with the FCA aiming to shift the conversation from 'Sexism in the City' to 'Accountability in the Office'.Links: https://www.ft.com/content/2e4df2fe-d2ae-46aa-bd00-d031a037bb44https://www.traverssmith.com/knowledge/knowledge-container/new-fca-guidance-on-non-financial-misconduct/

In this week's issue of Travers Smith's Sustainability Insights, we are looking at the UK's rollout of sustainability disclosure standards.The EU's sustainability omnibus is finally passed: The European Union has finalised its dramatic reforms to sustainability reporting rules, hitting fewer private companies and relaxing several related obligations.The UK confirms a cautious roll out: The UK’s sustainability reporting standards have been finalised, but mandatory rules are being developed that focus on proportionality and cost-benefit analysis – with more news for large private companies expected later in 2026.Sustainability remains a priority for rule makers: Both the EU and UK remain committed to sustainability as a policy priority, but now openly discuss burdens for companies as well as benefits for society.Links:https://www.consilium.europa.eu/en/press/press-releases/2026/02/24/council-signs-off-simplification-of-sustainability-reporting-and-due-diligence-requirements-to-boost-eu-competitiveness/https://www.traverssmith.com/knowledge/knowledge-container/travers-smiths-sustainability-insights-sustainability-reforms-lack-a-convincing-theory-of-change/https://www.gov.uk/government/publications/uk-sustainability-reporting-standards-uk-srs-s1-and-uk-srs-s2https://www.fmg.ac.uk/isf/publications/special-papers/do-climate-disclosure-mandates-help-decarbonise-economyhttps://www.traverssmith.com/people/simon-witney/https://www.traverssmith.com/knowledge/knowledge-container/travers-smiths-sustainability-insights-why-less-might-be-more/https://www.gov.uk/government/consultations/exposure-drafts-uk-sustainability-reporting-standards/outcome/government-response-to-the-consultation-on-uk-sustainability-reporting-standards-web-version#:~:text=a%20world%20leader%20for%20sustainable%20finance

In this week's issue of Travers Smith's Alternative Insights, we are looking at UK regulator's client categorisation rules and their effect on firms looking to access individual investors.Wealthy individuals targeted: In Europe, policymakers and larger private fund managers are adapting rules and processes to attract more high-net-worth investors, while acknowledging that managing investor protection rules is essential.FCA aims to simplify categorisation: The UK's regulator is proposing a more flexible, judgment-based approach to opting up retail clients, replacing rigid thresholds but stressing the need for robust assessments and proper due diligence.Firms must maintain standards: As individual investors become more prevalent in private markets, compliance processes are essential – requiring significant investment but promising lasting value.Links:https://www.traverssmith.com/knowledge/knowledge-container/eu-retail-investment-directive-and-regulation/https://url.uk.m.mimecastprotect.com/s/LnL0CQY4irXQXQFGHLIGkFHp?domain=sites-traverssmith.vuturevx.comhttps://www.ukprivatecapital.co.uk/static/dd01a037-6196-4184-87b43369579f1f87/260119-UK-Private-Capital-reponse-to-CP2536-Client-Cat-and-CoI-FINAL.pdf

SFDR 2.0: Six fixes for private marketsCurrent SFDR 2.0 proposals risk sidelining private funds—imposing impractical rules, stifling innovation, and missing the unique strengths of private capital. Is the EU about to bake greenhushing into law?What’s at stake for private funds?Proposals that overlook private markets: The draft framework applies retail-focused logic to all, missing how private markets operate. Ill-fitting rules could disrupt strategies and burden sponsors with unintended consequences.Limits on communication with professional investors: Preventing tailored ESG disclosure does more harm than good. Professional LPs want detail, transparency, and meaningful engagement on ESG strategy—yet current rules encourage silence instead.A missed opportunity for genuine engagement: Private equity influences sustainability through stewardship and direct ownership. Engagement should be central—not sidelined—to all fund categories.Operational impracticalities: Rules on exclusions and portfolio alignment don’t match the realities of investing in illiquid assets. Holding managers liable for market events out of their control is unworkable. Similarly, one-year compliance for funds-of-funds is unrealistic.What Needs to Change?Permit open ESG dialogue with professional investors—exempting such communications from the tightest restrictions.Recognise engagement as a core component of private fund ESG.Give managers practical leeway on exclusions and portfolio reporting, including time to adjust in fund-of-funds.Rethink fund labels. “ESG Basics” risks confusion and is, quite simply, not fit for purpose.Practical Takeaways:Now is the moment for asset managers to shape the rules: engage with policymakers, highlight the operational realities of the industry, and push for changes that reflect how private markets actually deliver sustainable impact.Start preparing for late 2027, but focus on influencing the detail today.How will you use your stakeholder voice as SFDR 2.0 moves forward?Links:https://www.traverssmith.com/knowledge/knowledge-container/travers-smiths-alternative-insights-the-commissions-sfdr-proposal-fails-to-deliver-clarity/https://www.traverssmith.com/knowledge/knowledge-container/finalised-sfdr-20-proposals/

This week we are taking a special look at the issues that will shape private capital in the year ahead. You can read our full analysis of those legal, regulatory and tax headwinds in our new publication Insights 26.Links:PEI Group datapartner for growthInsights '26the Corporate Sustainability Due Diligence Directivethe Corporate Sustainability Due Diligence Directivesecuritisation regimeharmonise trade reportingAIFMD IIUK AIFMDclient categorisation rulesnational security deal notificationmerger controlsstart, scale, and stay in the UKcontroversial proposal401(k) investment into alternative assetsEU AI ActInsights ’26

In his week's issue of Travers Smith's Sustainability Insights, we are looking at the agreed reforms to the EU's sustainability disclosure rules.Links:our detailed briefing2021 impact assessment

In this week's issue of Travers Smith's Alternative Insights, we are looking at the Commission's SFDR proposal fails to deliver clarity.Links:https://www.traverssmith.com/knowledge/knowledge-container/finalised-sfdr-20-proposals/https://www.traverssmith.com/knowledge/knowledge-container/possible-changes-to-the-eu-sfdr-the-european-commission-seeks-views/https://www.traverssmith.com/knowledge/knowledge-container/travers-smiths-sustainability-insights-what-will-sfdr-20-look-like/

In this week's issue of Travers Smith's Alternative Insights, we are looking at the UK's strategy for private capital in the wake of the latest budget.Links:https://www.traverssmith.com/knowledge/knowledge-container/travers-smiths-alternative-insights-the-impact-of-uk-tax-policy/https://www.traverssmith.com/knowledge/knowledge-container/autumn-budget-2025/https://www.traverssmith.com/knowledge/knowledge-container/autumn-budget-2025-private-capital/https://www.fnlondon.com/articles/rachel-reeves-private-equity-will-be-key-to-growth-push-95c10a9ahttps://assets.publishing.service.gov.uk/media/68595e56db8e139f95652dc6/industrial_strategy_policy_paper.pdfhttps://www.bvca.co.uk/static/e07847be-bbcc-4b7e-a201d5d182700aca/BVCA-Response-to-Invest-2035-The-UKs-Modern-Industrial-Strategy.pdf

In this week's issue of Travers Smith's Alternative Insights, we are looking at European fund labels.Links:https://www.traverssmith.com/knowledge/knowledge-container/draft-sfdr-20-proposals/https://www.traverssmith.com/knowledge/knowledge-container/sustainability-exchange-podcast/https://uksif.org/uksif-pwc-report-uk-sdr-and-investment-labels-implementation-lessons-and-the-road-ahead/

In this week's issue of Travers Smith's Alternative Insights, we are looking at the long term implications of the development of fund tokenisation. Links:https://www.fca.org.uk/publication/consultation/cp25-28.pdfhttps://www.traverssmith.com/knowledge/knowledge-container/fca-measures-to-support-direct-2-fund-dealing-and-fund-tokenisationhttps://www.theia.org/sites/default/files/2023-11/UK%20Fund%20Tokenisation%20-%20A%20Blueprint%20for%20Implementation.pdf

In this week's issue of Travers Smith's Sustainability Insights we are looking at human rights due diligence and defence investments.Links:https://www.traverssmith.com/knowledge/knowledge-container/travers-smiths-alternative-insights-private-markets-and-policy-goals/https://www.traverssmith.com/knowledge/knowledge-container/sustainability-and-security-investing-in-defencehttps://defence-industry-space.ec.europa.eu/eu-defence-industry/defence-readiness-omnibus_enhttps://data.consilium.europa.eu/doc/document/ST-12811-2025-INIT/en/pdfhttps://www.rusi.org/explore-our-research/publications/insights-papers/are-esg-standards-scapegoat-stalling-defence-growthhttps://www.traverssmith.com/knowledge/knowledge-container/travers-smiths-sustainability-insights-investing-in-europes-defence/https://docs.google.com/document/d/1WpGBd6s2-MO5YQw4nVDtiH0av5TjSCMfOoIDrupHLlY/edit?tab=t.0https://www.europeandefense.org/https://www.ohchr.org/sites/default/files/2022-08/BHR-Arms-sector-info-note.pdfhttps://www.americanbar.org/groups/human_rights/reports/defense-industry-human-rights-due-diligence-guidance/

In this week's issue of Travers Smith's Alternative Insights, we are looking at public private markets and how asset managers can influence them.Links:https://www.msn.com/en-gb/money/video/80-of-draghi-investment-ask-will-come-from-private-capital-says-kkr/vi-AA1NlSifhttps://www.cityam.com/rishi-sunak-assures-city-that-bonfire-of-financial-services-regulations-post-brexit-is-around-the-corner/https://www.british-business-bank.co.uk/news-and-events/news/british-business-bank-response-autumn-budget-2024https://www.british-business-bank.co.uk/finance-options/british-growth-partnershiphttps://www.bvca.co.uk/policy/nova.htmlhttps://www.lse.ac.uk/events/openhttps://www.fmg.ac.uk/isf/blended-finance-labhttps://www.bankofengland.co.uk/-/media/boe/files/speech/2015/building-real-markets-for-the-good-of-the-people.pdf

In this week's issue of Travers Smith's Alternative Insights, we are looking at transition plans in the UK.

In this week's issue of Travers Smith's Alternative Insights, we are looking at transatlantic tax policy and the art of the deal.Links:https://www.traverssmith.com/knowledge/knowledge-container/travers-smiths-alternative-insights-the-impact-of-uk-tax-policy/https://www.traverssmith.com/knowledge/knowledge-container/new-uk-carried-interest-tax-regime-draft-rules-published/https://www.traverssmith.com/knowledge/knowledge-container/new-uk-carried-interest-tax-regime-draft-rules-published/

In June, the UK took the next step in its plan to adopt international sustainability reporting standards for UK businesses, publishing a key consultation document. On the same day, it launched a consultation on how to implement its manifesto commitment to mandate credible, Paris-aligned climate transition plans for FTSE 100 companies and UK-regulated financial services firms, including asset managers.

In this week's issue of Travers Smith's Alternative Insights, we are looking at the impact of Taxing financial services professionals in the UK.Links:https://assets.publishing.service.gov.uk/media/6735f4670b168c11ea82311d/Financial_Services_Growth___Competitveness_Strategy_-_Call_for_Evidence_.pdfhttps://www.reuters.com/world/uk/uk-scrap-non-dom-tax-status-foreign-earnings-2024-03-06/https://www.traverssmith.com/knowledge/knowledge-container/autumn-budget-2024-non-dom-regime/#thechanges2https://on.ft.com/3Ij9PrThttps://www.traverssmith.com/knowledge/knowledge-container/rule-changes-for-european-private-fund-managers/https://obr.uk/docs/dlm_uploads/OBR_Economic_and_fiscal_outlook_Oct_2024.pdfhttps://www.traverssmith.com/knowledge/knowledge-container/government-provides-welcome-update-to-carried-interest-reform-proposals/https://www.ft.com/content/ba781c26-f3f0-4657-bad7-d47337353790https://on.ft.com/4nIgID5

In this week's issue of Travers Smith's Sustainability Insights we are looking at the UK's adoption of ISSB standards.

In this week's issue of Travers Smith's Alternative Insights, we are looking at liquidity routes for portfolio companies before exit.Links:https://www.linkedin.com/posts/travers-smith_assetmanagement-privatecapital-markets-ugcPost-7341038259122126849-K5r1?utm_medium=ios_app&rcm=ACoAAANSBP8B6s50YH7QZ6bxZ_O1alhPfCdpZEM&utm_source=social_share_send&utm_campaign=copy_linkhttps://www.traverssmith.com/knowledge/knowledge-container/pisces-key-questions-answeredhttps://www.gov.uk/government/news/government-goes-further-and-faster-to-boost-capital-markets-by-delivering-pisceshttps://on.ft.com/3FyWeM2

In this week's issue of Travers Smith's Sustainability Insights we are looking at the ongoing review of the SFDR.Links:https://finance.ec.europa.eu/sustainable-finance/disclosures/sustainability-related-disclosure-financial-services-sector_en#:~:text=attracting%20private%20funding%20to%20help%20Europe%20make%20the%20shift%20to%20a%20net%2Dzero%20economy.https://www.traverssmith.com/knowledge/knowledge-container/possible-changes-to-the-eu-sfdr-the-european-commission-seeks-views/https://finance.ec.europa.eu/document/download/0f2cfde1-12b0-4860-b548-0393ac5b592b_en?filename=2023-sfdr-implementation-summary-of-responses_en.pdfhttps://ec.europa.eu/info/law/better-regulation/have-your-say/initiatives/14666-Revision-of-EU-rules-on-sustainable-finance-disclosure_enhttps://ec.europa.eu/info/law/better-regulation/have-your-say/initiatives/14666-Revision-of-EU-rules-on-sustainable-finance-disclosure/F3562074_enhttps://uksif.org/uksif-response-eu-commission-sfdr-call-for-evidence/https://finance.ec.europa.eu/publications/categorisation-products-under-sfdr-proposal-platform-sustainable-finance_enhttps://www.traverssmith.com/knowledge/knowledge-container/simplification-or-deregulation-the-eus-sustainability-omnibus-explained/

In this week's issue of Travers Smith's Alternative Insights, we are looking at the rule changes for European private fund managers.Links:The Regulation of Hedge Funds and Private Equity: A Case Study in the Development of the EU’s Regulatory Response to the Financial Crisis by Eilis Ferran :: SSRNFinancial services – review of EU rules on alternative investment fund managersReport on the operation of the alternative investment fund managers directive (AIFMD) – Directive 2011/61/EUKickstart economic growth – The Labour Partye6cd4328-673c-4e7a-8683-f63ffb2cf648_enRegulations for Alternative Investment Fund Managers (Accessible) - GOV.UKCall for Input: Future regulation of alternative fund managersTargeted consultation on integration of EU capital markets 2025 - European CommissionCommission unveils savings and investments union strategy to enhance financial opportunities for EU citizens and businesses - European CommissionThe Draghi report on EU competitiveness

In this week's issue of Travers Smith's Sustainability Insights we are looking at the forthcoming round of sustainability reports for alternative asset managers. Links:https://ec.europa.eu/info/law/better-regulation/have-your-say/initiatives/14666-Revision-of-EU-rules-on-sustainable-finance-disclosure_enhttps://www.gov.uk/government/publications/climate-related-financial-disclosures-for-companies-and-limited-liability-partnerships-llpshttps://www.traverssmith.com/knowledge/knowledge-container/sustainability-disclosure-requirements-sdr-and-investment-labels-the-new-rules/#A2:~:text=section%203%20below.-,Entity%2Dlevel%20disclosures,-Requirements%20on%20UKhttps://assets.bbhub.io/company/sites/60/2021/10/FINAL-2017-TCFD-Report.pdfhttps://www.traverssmith.com/knowledge/knowledge-container/the-clock-stops-but-the-bus-rumbles-on-csrd-omnibus-clears-its-first-hurdle/https://www.ifrs.org/issued-standards/ifrs-sustainability-standards-navigator/

In this episode Simon, Trysha Daskam-Smith, Head of ESG Strategy at Silver Regulatory Associates and Michael Raymond delve into pressing issues faced by European fund managers when dealing with US investors amidst the current headlines. Tune in to explore:A nuanced discussion of how the term ESG is perceived across different markets, especially US investors with varied stances in different statesPractical advice on communicating ESG commitments consistently and factually, avoiding political pitfalls while emphasising value creationHow international regulatory standards influence global fund marketing strategies

In this week's issue of Travers Smith's Alternative Insights, we are looking at the UK regulator's review of valuations in private markets, highlighting some important action points for UK-regulated firms. Links:FR10/23 Thematic Analysis: Emerging Risks in Private FinancePrivate market valuation practices | FCA23-013_6a38dcc8-4aff-4acc-8f28-d024728613d6.pdfHow Fair are the Valuations of Private Equity Funds? by Tim Jenkinson, Miguel Sousa, Rüdiger Stucke :: SSRNPortfolio letter: Asset Management & Alternatives - Supervisory Strategy

In this week's issue of Travers Smith's Sustainability Insights we are looking at investments in defence by alternative asset managers.Links:Rethinking Defense: The Role of Private Capital | Bain & CompanyPreqinWoke guns? Banks want weapons badged as a social good – POLITICOOur position on sustainability regulations and UK defence | FCAESMA Guidelines on Fund Names | Travers SmithEU foreign subsidies regulation: another notification regime for dealmakers to become law | Travers SmithAsset managers race to set up European defence fundsDutch pensions to invest €100bn in risky assets boosting Europe’s defence efforts23-315 EIF Policy on Exclusions and Restrictions.pdfNorway urged to drop ‘crazy’ ban on investment in defence companiesguidingprinciplesbusinesshr_en.pdfBHR-Arms-sector-info-note.pdfFrom Berlin to Tokyo, the fears of a new nuclear arms race

In this week's issue of Travers Smith's Alternative Insights, we are looking at securitisation reform in Europe.Links:UK regulators to face twice-yearly reviews as Reeves vows to slash red tape | Rachel Reeves | The GuardianNew approach to ensure regulators and regulation support growth (HTML) - GOV.UKNew approach to ensure regulators and regulation support growth (HTML) - GOV.UKSimplification or Deregulation? The EU's Sustainability Omnibus Explained | Travers SmithHow to fix Europe’s securitisation market US and Asia securitisation markets contribute far more to financing their economies than Europe - “Now is the time to address the gap | AFMEInvestors call for shake-up of Europe’s ‘failed’ securitisation marketReviving the UK securitisation marketApollo Sees €1 Trillion Opportunity If Europe Overhauls ABSSecuritisation Data Report Q4 2023 & 2023 Full Year | AFMEThe Opportunity Of Asset-Based Finance Draws In Private Credit | S&P Global Ratings97e481fd-2dc3-412d-be4c-f152a8232961_enSecuritisation | FCATargeted consultation on the functioning of the EU securitisation framework 2024 - European CommissionACC and AIMA respond to European Commission’s consultation on securitisationAFME responds to the European Commission’s targeted consultation on the functioning of the EU Securitisation Framework | AFME

In this week's issue of Travers Smith's Sustainability Insights we are asking whether it still makes sense for global compliance programmes to adopt a single standard.Links:Anu Bradford | Columbia Law SchoolFact Sheet: President Donald J. Trump Protects Civil Rights and Merit-Based Opportunity by Ending Illegal DEI – The White HouseFederal Register :: Pausing Foreign Corrupt Practices Act Enforcement To Further American Economic and National SecuritySEC.gov | Acting Chairman Statement on Climate-Related Disclosure RulesFinal rule: The Enhancement and Standardization of Climate-Related Disclosures for InvestorsUS judge temporarily blocks Trump’s anti-DEI purge | US news | The GuardianCOMPS-9569.pdfFailure to prevent fraud guidance published – what do businesses need to do now? | Travers SmithSimplification or Deregulation? The EU's Sustainability Omnibus Explained | Travers SmithEnsuring Accountability for All Agencies – The White HouseDefending American Companies and Innovators From Overseas Extortion and Unfair Fines and Penalties – The White HouseWithdrawing The United States From The World Health Organization – The White House

In this week's issue of Travers Smith's Alternative Insights, we are looking at tax incentives in private markets.Links:Our 2024 budget briefing - https://www.traverssmith.com/knowledge/knowledge-container/autumn-budget-2024/BVCA The tax treatment of carried interest – Consultation on qualifying conditions - https://www.bvca.co.uk/static/2e27e13b-ef87-440e-b75bb6717c8e228a/BVCA-response-to-carried-interest-consultation-31-Jan.pdfOur briefing: Salaried members update: HMRC to reverse controversial guidance changes on increases in capital contributions - https://www.traverssmith.com/knowledge/knowledge-container/salaried-members-update-hmrc-to-reverse-controversial-guidance-changes-on-increases-in-capital-contributions/

In this week's issue of Travers Smith's Sustainability Insights we are looking at the simplification of EU sustainability laws.Links:https://www.epp.eu/files/uploads/2025/01/EPP-Retreat-Growth-and-Jobs-statement.pdfhttps://www.humanrights.dk/files/media/document/Letter%20of%20European%20NHRIs%20on%20the%20omnibus%20proposal.pdfhttps://www.unpri.org/download?ac=22691

In this week's issue of Travers Smith's Alternative Insights, we focus on our annual preview of the year ahead for the alternative asset managers, which we call Insights '25.  Please do check it out – a link is below.Links:Insights '25 - What to expect in 2025Investors - Alternative Insights 2025People and DE&I - Alternative Insights 2025

In this week's issue of Travers Smith's Sustainability Insights we are looking at UK sustainability regulation, and what's in store for 2025.Links:https://www.traverssmith.com/knowledge/knowledge-container/travers-smiths-sustainability-insights-eu-sustainability-regulation-in-2025/https://www.responsible-investor.com/esg-round-up-germanys-scholz-calls-for-two-year-delay-to-csrd/https://www.traverssmith.com/knowledge/knowledge-container/icymi-a-recap-of-developments-in-eu-sustainability-reporting-in-2024/https://www.traverssmith.com/knowledge/knowledge-container/travers-smiths-sustainability-insights-the-role-of-government-in-transition-finance/https://www.traverssmith.com/knowledge/knowledge-container/size-matters-guidance-on-climate-related-disclosures-for-large-companies-and-llps/https://www.gov.uk/guidance/energy-savings-opportunity-scheme-esoshttps://www.traverssmith.com/knowledge/knowledge-container/from-energy-savings-opportunity-to-energy-savings-requirements/https://www.frc.org.uk/news-and-events/news/2024/12/uk-sustainability-tac-issues-final-recommendations/https://www.traverssmith.com/knowledge/knowledge-container/cs3d-whats-new-and-whats-next/https://papers.ssrn.com/sol3/papers.cfm?abstract_id=5083571https://www.theglobalcity.uk/PositiveWebsite/media/Research-reports/Scaling-Transition-Finance-Report.pdfhttps://www.traverssmith.com/knowledge/knowledge-container/uk-modern-slavery-act-2015-to-reform-or-not-to-reform-that-remains-the-question-following-latest-position-from-government/https://www.gov.uk/government/publications/modern-slavery-government-response-to-house-of-lords-committee-reporthttps://committees.parliament.uk/committee/700/modern-slavery-act-2015-committee/news/203272/uks-response-to-modern-slavery-has-not-kept-up-with-the-advances-of-other-nations/https://www.traverssmith.com/knowledge/knowledge-container/sustainability-disclosure-requirements-sdr-and-investment-labels-the-new-rules/https://www.traverssmith.com/knowledge/knowledge-container/sdr-finalised-guidance-on-the-anti-greenwashing-rule/https://www.traverssmith.com/knowledge/knowledge-container/travers-smiths-sustainability-insights-labels-for-uk-funds-but-limited-impact-for-private-capital/https://www.traverssmith.com/knowledge/knowledge-container/sdr-and-investment-labels-extension-of-the-regime-to-uk-portfolio-managers/https://www.traverssmith.com/knowledge/knowledge-container/sustainability-disclosure-requirements-sdr-and-investment-labels-the-new-rules/#:~:text=wealth%20management%20services.-,Overseas%20funds%C2%A0,-The%20FCA%20sayshttps://www.fca.org.uk/news/statements/fca-welcomes-move-bring-esg-ratings-providers-regulation

In this week's issue of Travers Smith's Sustainability Insights we are looking at EU sustainability regulation, and what's in store for 2025.Links:https://www.consilium.europa.eu/en/press/press-releases/2024/11/08/the-budapest-declaration/https://www.traverssmith.com/knowledge/knowledge-container/travers-smiths-sustainability-insights-the-impact-of-the-draghi-report-on-esg-regulation/https://www.businesseurope.eu/sites/buseur/files/media/position_papers/legal/2024-11-05_joint_trade_association_statement_towards_eu_due_diligence_that_works_for_all_0.pdfhttps://www.consilium.europa.eu/en/press/press-releases/2024/11/08/the-budapest-declaration/#:~:text=We%20must%20adopt%20an%20enabling%20mindset%20based%20on%20trust%2C%20allowing%20business%20to%20flourish%20without%20excessive%20regulation.https://www.peievents.com/en/event/responsible-investment-forum-europe/https://www.linkedin.com/posts/tim-lewis-a517261a_last-night-we-gathered-members-of-our-asset-activity-7265398692105314307-376Fhttps://www.traverssmith.com/knowledge/knowledge-container/cs3d-whats-new-and-whats-next/https://www.traverssmith.com/knowledge/knowledge-container/csrd-the-road-to-compliancehttps://apps.fliplet.com/esgapphttps://www.traverssmith.com/knowledge/knowledge-container/possible-changes-to-the-eu-sfdr-the-european-commission-seeks-views/https://www.traverssmith.com/knowledge/knowledge-container/esas-propose-changes-to-sfdr-regulatory-technical-standards/https://www.traverssmith.com/knowledge/knowledge-container/esma-guidelines-on-fund-names/https://www.consilium.europa.eu/en/press/press-releases/2024/11/19/environmental-social-and-governance-esg-ratings-council-greenlights-new-regulation/https://www.fca.org.uk/news/statements/fca-welcomes-move-bring-esg-ratings-providers-regulationhttps://www.newprivatemarkets.com/pe-firms-at-risk-of-esg-litigation-says-travers-smith/

In this week's issue of Travers Smith's Alternative Insights, we are looking at some recent UK government announcements that affect alternative asset managers.Links:https://www.traverssmith.com/knowledge/knowledge-container/autumn-budget-2024/https://www.gov.uk/government/speeches/mansion-house-2024-speechhttps://www.gov.uk/government/news/chancellor-fires-up-financial-services-sector-to-drive-growth#:~:text=BVCA%20Chief%20Executive%20Michael%20Moore%20said%3A%C2%A0https://assets.publishing.service.gov.uk/media/6735d9ebb613efc3f18230e9/pension_fund_investment_and_the_uk_economy.pdfhttps://www.gov.uk/government/publications/pensions-investment-review-interim-reporthttps://www.ft.com/content/362ca4cd-a892-4525-bddf-82abe5f339b4#msdynmkt_trackingcontext=910b9634-aa02-4b3a-a831-bcb7e4b55c60https://assets.publishing.service.gov.uk/media/67372cf9c0b2bbee1a127202/pensions_investment_review_unlocking-the_uk_pensions_market_for_growth.pdfhttps://www.gov.uk/government/calls-for-evidence/financial-services-growth-and-competitiveness-strategyhttps://on.ft.com/3V9Tpp8

In this week's issue of Travers Smith's Sustainability Insights we are looking at what COP29 tells us about the new UK government's green growth ambitions. Links:https://unfccc.int/cop29https://www.bbc.co.uk/news/articles/cpqd1rzw9r4ohttps://www.bbc.co.uk/news/articles/cx2lknel1xpohttps://www.traverssmith.com/knowledge/knowledge-container/what-to-expect-at-cop29/https://unfccc.int/process-and-meetings/the-paris-agreementhttps://unctad.org/publication/new-collective-quantified-goal-climate-financehttps://www.bbc.co.uk/news/science-environment-54797743https://www.ft.com/content/24b994ec-9d69-47df-8c23-efc5762877e9https://unfccc.int/resource/docs/convkp/conveng.pdfhttps://www.traverssmith.com/knowledge/knowledge-container/travers-smiths-sustainability-insights-the-role-of-government-in-transition-finance/https://www.iigcc.org/hubfs/IIGCC%20publishes%20open%20letter%20in%20support%20of%20an%20ambitious%20New%20Collective%20Quantified%20Goal%20on%20climate%20finance.pdfhttps://www.newprivatemarkets.com/tpg-and-brookfield-hail-climate-fund-momentum/https://www.bbc.co.uk/news/articles/cx2ny8zndpxohttps://www.bbc.co.uk/news/articles/c4gve4d8jljo

In this week's issue of Travers Smith's Alternative Insights, we are looking at the Labour Government's Autumn Budget, and its likely impact on UK alternative asset managers.

In this week's episode of Travers Smith's Sustainability Insights we are looking at the new UK government's approach to transition finance.Links:https://www.gov.uk/government/news/record-breaking-international-investment-summit-secures-63-billion-and-nearly-38000-jobs-for-the-ukhttps://www.cityam.com/bosses-at-worlds-biggest-banks-britain-is-ready-for-investment/https://www.gov.uk/government/speeches/pm-international-investment-summit-speech-14-october-2024https://www.gov.uk/government/news/game-changing-tech-to-reach-the-public-faster-as-dedicated-new-unit-launched-to-curb-red-tapehttps://www.cityam.com/rachel-reeves-promises-to-revolutionise-uk-capital-markets-and-boost-london-listings/https://www.gov.uk/government/news/dan-corry-appointed-to-lead-defra-regulation-reviewhttps://assets.publishing.service.gov.uk/media/670cde8692bb81fcdbe7b745/industrial-strategy-green-paper-final.pdfhttps://www.ukib.org.uk/https://www.british-business-bank.co.uk/finance-providers-equity-finance/british-growth-partnershiphttps://www.linkedin.com/posts/bvca_a-significant-step-forward-for-investment-activity-7251635037433991168-ztWw/https://www.theglobalcity.uk/PositiveWebsite/media/Research-reports/Scaling-Transition-Finance-Report.pdfhttps://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32023H1425https://www.ft.com/content/c0ca95ce-ffcf-4c10-b789-174e359e16efhttps://player.captivate.fm/episode/457a3e0b-8938-43d1-8590-64e33625b7c0/https://url.uk.m.mimecastprotect.com/s/VBJCC8p4c9q036txt0FyxU-_?domain=sites-traverssmith.vuturevx.com

Welcome to the fifth episode in our Sustainability Insights ... in conversation series.In the fifth episode of our Sustainability Insights … in conversation series, where we discuss the role of responsible investment in improving risk-adjusted returns, in aligning values, and in solving real world problems.Does Sustainable Investing Work?

In this week's issue of Travers Smith's Alternative Insights, we are looking at we are looking at the EU AI Act, and its likely impact on the attractiveness of the EU as a hub for Artificial Intelligence.Links:https://academic.oup.com/book/36491https://digital-strategy.ec.europa.eu/en/policies/european-approach-artificial-intelligencehttps://www.theguardian.com/books/2023/sep/02/i-hope-im-wrong-the-co-founder-of-deepmind-on-how-ai-threatens-to-reshape-life-as-we-know-ithttps://oecd.ai/en/ai-principleshttps://www.esma.europa.eu/sites/default/files/2024-05/ESMA35-335435667-5924__Public_Statement_on_AI_and_investment_services.pdfhttps://www.traverssmith.com/knowledge/knowledge-container/travers-smiths-alternative-insights-financial-regulation-and-ai/https://www.traverssmith.com/knowledge/knowledge-container/travers-smiths-alternative-insights-financial-regulation-and-ai/ https://www.gov.uk/government/consultations/ai-regulation-a-pro-innovation-approach-policy-proposals/outcome/a-pro-innovation-approach-to-ai-regulation-government-responsehttp://opiniojuris.org/2020/11/25/the-time-has-come-for-international-regulation-on-artificial-intelligence-an-interview-with-andrew-murray/#:~:text=I%20would%20much%20prefer%2C%20if%20possible%2C%20if%20this%20was%20a%20truly%20international%20(UN%2Dled%2C%20for%20example)%20exercise%20wherein%20countries%20like%20China%20are%20on%20board%20and%20not%20feeling%20coerced%20into%20adopting%20something

In this week's issue of Travers Smith's Sustainability Insights we are looking at Mario Draghi's report on EU competitiveness and its potential impact on sustainability regulation for private capital firmsLinks:https://commission.europa.eu/document/download/97e481fd-2dc3-412d-be4c-f152a8232961_enhttps://www.ft.com/content/298008a0-b75d-4062-9cb1-86b12ac30fbdhttps://commission.europa.eu/document/download/ec1409c1-d4b4-4882-8bdd-3519f86bbb92_enhttps://ec.europa.eu/commission/presscorner/detail/en/IP_00_96https://www.epc.eu/content/PDF/2024/20230277_hidden_champions_missed_opportunities_en.pdfhttps://www.traverssmith.com/knowledge/knowledge-container/new-mandatory-tcfd-reporting-for-more-uk-companies/https://commission.europa.eu/system/files/2023-03/Communication_Long-term-competitiveness.pdfhttps://doi.org/10.1093/jfr/fjac001https://link.springer.com/article/10.1007/s11142-021-09609-5https://www.bvca.co.uk/Portals/0/BVCA%20Response%20to%20FRC%20UK%20SD%20TAC%20CfE.pdfhttps://commission.europa.eu/document/download/e6cd4328-673c-4e7a-8683-f63ffb2cf648_en?filename=Political%20Guidelines%202024-2029_EN.pdf

In this week's issue of Travers Smith's Alternative Insights, we are looking at we are looking at NAV lending to private equity funds, and ILPA's recently issued guidance. Links: McKinsey's 2024 Global Markets ReviewILPA guidance on continuation fundsILPA review of its highly impactful reporting templateILPA guidance on NAV-based facilitiesFinancial Stability ReportBVCA pointed outILPA Guidance

Welcome to the third episode in our Sustainability Insights ... in conversation series.In the fourth episode of our Sustainability Insights … in conversation series, Simon Witney speaks to Diandra Soobiah, Director of Responsible Investment at Nest, the National Employment Savings Trust. Their discussion explores Nest's significant commitments to the private markets and, with 15% of NEST's £42 billion AUM allocated to private markets, Diandra explains what more she wants to see from the sector.

In this week's issue of Travers Smith's Alternative Insights, we are looking at trends in the private markets as discussed at our third annual Alternative Insights Summit in June.To see the agenda for our Summit, click here. Links:https://www.traverssmith.com/knowledge/knowledge-container/travers-smiths-alternative-insights-back-to-work/https://www.linkedin.com/posts/travers-smith_assetmanagement-alternativeinsights-privatecapital-activity-7217464206562865152-BOcrhttps://www.linkedin.com/posts/travers-smith_assetmanagement-investigations-markets-activity-7219621018435227648-h7dEhttps://www.linkedin.com/posts/travers-smith_markets-assetmanagement-pensions-activity-7221107755879731200-eAlhhttps://www.bvca.co.uk/Policy/Investment-Compacthttps://www.linkedin.com/posts/travers-smith_assetmanagement-tax-markets-activity-7221835553900531714-vyWu/https://www.linkedin.com/posts/travers-smith_esg-sustainability-markets-activity-7218950444658626560-d1kP/

In this week's issue of Travers Smith's Alternative Insights, we are looking at trends in the private markets as reported by the keynote speaker at our recent summit.Links:https://www.bain.com/insights/topics/global-private-equity-report/https://www.collercapital.com/coller-capitals-40th-global-private-capital-barometer-summer-2024/