ANTOINE BOUVERET | Senior economist, European Securities and Markets Authority
MASSIMO FERRARI | Economist – Markets and Investors Team, European Securities and Markets Authority
STEFFEN KERN | Chief Economist and Head of Risk Analysis, European Securities and Markets Authority

The asset management industry has grown significantly in recent years – in Europe alone assets under management have more than doubled in the last decade – and, as a result, is attracting heightened attention for its systemic implications. Alternative investments, including hedge funds and private equity, form a significant part of that industry. In the E.U., the Alternative Investment Fund Manager Directive (AIFMD) provides a dedicated regulatory framework for these alternative investment funds. This article presents a comprehensive mapping of the €6 trillion E.U. AIF market, and an overview of the indicators ESMA applies to assess industry-level risks.