The new changes may have an impact on the real estate private equity industry to an extent we have never really seen before.

The regulatory bodies are focusing on the alternative investment industry, which until now has been lightly regulated.

The new changes may have an impact on the real estate private equity industry to an extent we have never really seen before. What was previously a very immature industry is starting to take on an increased element of operational maturity and is benefiting from better deployment of technology.

Regulations that impact the real estate funds industry include:

• Dodd-Frank Act
• Alternative Investment Fund Managers (AIFM) Directive
• AIFM (Non-EU-based platforms)
• Basel III
• Solvency II
• European Markets Infrastructure Regulation (EMR)

How might investors react to regulations?

As much as investors want to feel a little more secure that their investments are being looked after properly, they don't want the fund manager to be too burdened or overly focused on compliance with regulations and the increasing costs of running the fund, which will impact their returns.

Very often, when investors place capital with real estate private equity funds, they're looking for outsized returns, which comes down to speed-to-market and being able to act quickly without having to deal with a lot of cumbersome regulations.

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