The European Commission today proposed a Directive on Alternative Investment Fund Managers ("AIFM"), a draft of which we have discussed last week. The final text of the Directive has not yet been made available to the public, but the European Commission issued a press release stating that "the Directive will only apply to those AIFM managing a portfolio of more than 100 million euros. A higher threshold of 500 million applies to AIFM not using leverage (and having a five years lock-in period for their investors) as they are not regarded as posing systemic risks. A threshold of € 100 million implies that roughly 30% of hedge fund managers, managing almost 90% of assets of EU domiciled hedge funds, would be covered by the Directive." We will monitor the release of the final text of the proposed EU Directive which is expected to be published soon.