It's a new month, with plenty happening and plenty right around the corner. So, let's get straight into things.
This week, I discuss:
AIMA weighs in on BlueCrest v HMRC clash
Our view on private credit redemptions
AIMA welcomes new CFTC Chairman Selig and outlines advocacy priorities
Regulatory dates for February
Thanks,
Drew Nicol, Director, Research and Communications, AIMA
Disclaimer: All views expressed in this blog are my own, not AIMA's.
AIMA Weighs In On BlueCrest V HMRC Clash
Last week, BlueCrest Capital's case against HMRC landed in the UK Supreme Court.
The case is all about whether the UK's "salaried members rules" apply to partners in an LLP.
If they do, people who'd usually be treated as self-employed get treated as employees for tax, meaning the LLP has to run PAYE and pay employers' NICs on their remuneration.
When these "salaried members rules" were introduced, HMRC published guidance (shared with Parliament during the Finance Bill), with input from AIMA and others. But despite that, the rules have become a recurring flashpoint, with HMRC disputing how they should apply in practice, including in BlueCrest's case.
The Court of Appeal effectively said the guidance doesn't carry much weight in interpreting the law, and sent the case back to the First-tier Tribunal to take another look. BlueCrest has now appealed that decision to the Supreme Court.
Why is this so important?
This is the first (and potentially only) time the Supreme Court is likely to weigh in on the "salaried members" rules.
How is AIMA involved?
AIMA stepped into the Supreme Court case because these rules matter to a huge chunk of the LLP world, including around 160 AIMA members, and, more broadly, thousands of LLPs across the economy.
To make sure the industry's concerns were clearly heard, as the world's largest trade body for alternative investments, AIMA were granted permission to intervene in the case and made a submission towards the case.
In that submission, AIMA argues how the rules should be interpreted and why the Court of Appeal took a wrong turn. The key point is that whatever the Supreme Court decides won't just land on BlueCrest, other taxpayers will treat it as the roadmap, so a clear statement of the wider principles (not just the case specifics) really matters.
What next?
The case took place last week, and now we await a final judgment that can land any day in the coming weeks and months.
BDC Redemptions: One Quarter Does Not Signify A Trend
BDC redemption figures have recently attracted media attention, and in a weekly media briefing special, Jiri Krol, Global Head of AIMA's private credit affiliate, the Alternative Credit Council, explains why credit fundamentals remain resilient.
Recent media reports highlight that approximately $7 billion was withdrawn from non-traded US BDCs towards the end of 2025. While headline-grabbing, preliminary data suggests it is premature to view this as a structural shift or a sign of deteriorating retail appetite.
Net Inflows Remain Positive Gross redemptions do not tell the whole story. Several major funds, including those mentioned in the press articles, continue to report positive net inflows, meaning new subscriptions exceeded withdrawals. This indicates that despite higher outflows, investor demand for the asset class remains resilient.
Sentiment vs. Fundamentals The redemptions appear driven more by "headline risk" than by actual changes in portfolio health. While coverage has linked outflows to high-profile bankruptcies like First Brands and Tricolor, these were isolated events where private credit funds had limited exposure while BDCs had virtually zero exposure.
Fundamentally, credit quality remains stable. Our research shows that private credit non-accrual rates are hovering near historical trends of approximately 2%. Data implies that recent redemptions are not a reaction to systemic credit deterioration, but rather a response to negative sentiment.
Conclusion: Investors should note two key factors:
- All major funds maintained net inflows in Q4 2025 despite elevated redemptions.
- Credit quality remains broadly stable despite market noise.
While sentiment played a role in late 2025, the underlying fundamentals suggest the sector is robust.
AIMA Welcomes New CFTC Chairman Selig And Outlines Advocacy Priorities
In a letter submitted last week to CFTC Chairman Michael S. Selig, we encouraged the Commission under his leadership to build on recent regulatory relief and move quickly to reinstate important exemptions for fund managers.
Our letter called for clearer rules for digital asset markets, continued support for efficient swaps trading, and a fresh look at systemic risk reporting requirements. It also called for the reinstatement of Rule 4.13(a)(4), which would reduce duplicative registration requirements for sophisticated, non-retail pools, lower compliance costs, and support deeper, more efficient derivatives markets without diminishing investor protections.
Zooming out, the letter also highlights that we are firmly in favour of closer SEC–CFTC collaboration and harmonisation, especially where today's overlapping and often inconsistent regulatory frameworks create avoidable confusion or duplicated compliance, with digital assets front and centre.
With the SEC and CFTC holding a joint event last week on harmonisation, this will be a key focus in 2026, and we will be engaging both agencies to help drive more joined-up, workable rules.
About AIMA:
The Alternative Investment Management Association (AIMA) is the global representative of the alternative investment industry, with around 2,100 corporate members in over 60 countries. AIMA’s fund manager members collectively manage more than US$3 trillion in hedge fund and private credit assets.
