During August 2009, the independent think tank Open Europe conducted two surveys of hedge fund and private equity fund managers to assess the potential impact of the European Union’s (EU) proposed Alternative Investment Fund Manager (AIFM) Directive on their industries.  (For a more detailed analysis of the AIFM Directive, see “Andrew Baker, CEO of the Alternative Investment Management Association, Discusses the AIFM Directive, UK Tax, Short Selling and Other Topics with the Hedge Fund Law Report,” Hedge Fund Law Report, Vol. 2, No. 29 (Jul. 23, 2009); “AIFM Directive: Loosening the Regulatory Noose,” Hedge Fund Law Report, Vol. 2, No. 24 (Jun. 17, 2009); “Directive on Alternative Investment Fund Managers Likely to Occasion Substantial Ongoing Debate Over the Appropriate Scope of Regulation of European Hedge Fund Managers,” Hedge Fund Law Report, Vol. 2, No. 19 (May 13, 2009).)  The respondents, primarily based in the United Kingdom (U.K.), included 121 hedge fund managers and fund of funds managers representing $342 billion in assets under management and 41 private equity fund managers, representing funds under management of over $204 billion.  In September 2009, Open Europe released its survey findings and recommendations in a report, entitled “The EU’s AIFM Directive: Likely impact and best way forward.”  Among other things, Open Europe found that the Directive would impose ongoing compliance costs of between €689 million and €985 million on the hedge fund industry, as firms act to comply with the new rules.  This article examines the most salient findings from the report, including its analysis of the benefits and costs of the AIFM Directive and its criticisms of the current proposal.