U.S. hedge fund managers broadly have four options available for accessing EU investors in a manner consistent with the AIFMD: reverse solicitation; reliance on national private placement regimes (a time-limited solution); in-house compliance with the AIFMD; and outsourced compliance.  See “Four Approaches to Fund Marketing and Distribution Under the AIFMD,” Hedge Fund Law Report, Vol. 7, No. 21 (Jun. 2, 2014); “Four Strategies for Hedge Fund Managers for Accessing EU Capital Under the AIFMD,” Hedge Fund Law Report, Vol. 7, No. 6 (Feb. 13, 2014).  The Hedge Fund Law Report recently interviewed Paul Nunan, Managing Director of Capita Financial Managers (Ireland) Limited, on the mechanics of the fourth option – outsourced compliance.  Outsourcing in this context generally makes sense for a U.S. hedge fund manager that wishes to focus on capital raising and investment management in Europe, while a third party focuses on the risk, reporting and other operational requirements of the AIFMD.  However, outsourcing also involves addressing a series of complex questions, including whether to do so in the first instance, to whom, with respect to what specific tasks, how to measure service levels, how to allocate responsibility and so on.  This interview is intended to help hedge fund managers think through the analysis of outsourcing AIFMD compliance.  In addition, this interview delves deeply into the mechanics of AIFMD compliance generally, covering such topics as: jurisdiction (i.e., who the AIFMD covers); sizing the capital raising opportunity in Europe; application of the AIFMD to branch offices and additional investments by existing investors; how to prove reverse solicitation to regulators; the time-limited viability of reliance on national private placement regimes; and remuneration, transparency, business conduct, leverage and reporting requirements under the AIFMD.  See also “Application of the AIFMD to Non-EU Alternative Investment Fund Managers (Part One of Two),” Hedge Fund Law Report, Vol. 6, No. 21 (May 23, 2013).