EuSEF

EU

European Social Entrepreneurship Fund (EuSEF) - such funds being the subject of the European Union Regulation 346/2013.

The regime is optionally available to fund managers in the (EEA) that fall below the €500m threshold of the Alternative Investment Fund Managers (AIFM) Directive (AIFMD). It gives a passport for raising capital across the European Economic Area by marketing to qualified investors and subject to registration, observance of certain rules for investment and observation of regulatory requirements. Investment has to be primarily in Small and Medium-sized Enterprises (SMEs). Borrowing (leverage) by the fund is not generally allowed.

An EuSEF is distinguished from an EuVECA fund by its investments have the primary objective of achieving measurable, positive social impacts.

A fund that grows beyond the €500m limit must gain authorisation under the AIFMD - subject to which it may continue to use the EuSEF designation if it meets the other EuVECA requirements.