AAA Supports Plans for EU Venture-capital ‘Passport’

April 15, 2011 - PRLog -- Boston, MA -- Plans to open up the European Union (EU) to more private equity investment from venture capitalists has received support from alternative investment advocacy group, Alternative Asset Analysis (AAA).

The proposals set out by the European Commission (EC) would see venture capitalists granted a 'passport' to allow them to invest anywhere within the EU.

AAA analyst Anthony Johnson stated, "The plans to open up investment routes within the European Union will be good for the alternative investment market in the region and will also stimulate economic growth for EU member countries."

Small businesses based in EU member states will particularly benefit from the plans, claimed analysts. Ross Butler of the European Private Equity and Venture Capital Association also supported the idea, stating: "A clearer cross-border regulatory framework for making venture capital investments would lower operating costs and risks."

Last year, the EU changed rules for private equity investors to allow them to invest in other member states providing they adhered to certain transparency rules. Now, this new rule could be rolled out to venture capitalists who invest in firms in their earlier stages of development.

"This new proposal will be a major boon for small businesses across the EU, bringing them billions in potential foreign investment and opening up the EU single market for growth and expansion," added Johnson, who has many years of fund management experience in the UK and the US.

Michel Barnier, the EC's Financial Services Commissioner, is hoping to put the new rules in place by the end of 2012 and hopes the changes will boost the free movement of capital goods and service within the continent.

AAA added that it supports international investment in alternative assets, including private equity, real estate, commodities, precious metals and currencies. It also highlighted its support for ethical investment in projects that bring funding to social and environmentally beneficial projects, such as sustainable forestry plantations through funds such as Greenwood Management Aps, and social investment through organizations like the KL Felicitas Foundation.

Johnson explained AAA's stance on these issues: "AAA believes that opening up the international investment market is a positive move to encourage investment in alternative assets and ethical enterprises."

He continued, "Any change in legislation that encourages cross-border private equity investment could be a change that also boosts the funding available to social and environmental projects in developing nations, which protect the planet for future generations and help communities to help themselves."

Contact:
Anthony Johnson
Alternative Asset Analysis
71 Commercial St
Boston, MA 02109-1320
617-898-6317
info@alternativeassetanalysis.com
http://www.alternativeassetanalysis.com

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