(Article 12(1) of Directive 2011/61/EU)

1. Where AIFMs invest in assets of limited liquidity and where such investment is preceded by a negotiation phase, they shall, in relation to the negotiation phase, in addition to the requirements laid down in Article 18:

(a) set out and regularly update a business plan consistent with the duration of the AIF and market conditions;

(b) seek and select possible transactions consistent with the business plan referred to in point (a);

(c) assess the selected transactions in consideration of opportunities, if any, and overall related risks, all relevant legal, tax-related, financial or other value affecting factors, human and material resources, and strategies, including exit strategies;

(d) perform due diligence activities related to the transactions prior to arranging execution;

(e) monitor the performance of the AIF with respect to the business plan referred to in point (a).

2. AIFMs shall retain records of the activities carried out pursuant to paragraph 1 for at least five years.