EC consults on reform of venture and growth capital funds

The European Commission (EC) has launched two consultations on reforming the rules for venture and growth capital funds. The consultations seeks to explore potential changes to the regulatory framework applying to such funds to support their development across the EU single market. This follows the identification of issues related to market fragmentation and unnecessary regulation.

The targeted consultation requests input from key stakeholders such as fund managers, institutional investors, public authorities and supervisors. It seeks insight into the barriers faced by managers and considers how the European Venture Capital Fund (EuVECA), European Social Entrepreneurship Funds (EuSEF) and the Alternative Investment Fund Managers (AIFMD) regimes could be changed to facilitate the development of such funds. In particular, the consultation includes specific questions on the calibration of thresholds under the EuVECA and AIFMD regimes, which trigger certain requirements, and the practical functioning of the EuVECA and EuSEF regimes.

In tandem, the EC has launched a public consultation on the functioning of the AIFMD and EuVECA regimes and other relevant regulatory frameworks. Feedback received will inform the EC's approach for the review of the EuVEC Regulation which is anticipated for Q3 2026. The review is one of the workstreams being carried out under the Savings and Investments Union Strategy. Depending on the results of this consultation, the EC may also consider reform to venture and growth capital funds regulation which goes beyond the current scope of the EuVECA regime. The deadline for comments on both consultations is 12 March.

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