AIFMD
The European Union framework that regulates managers of alternative funds.
It sets rules for authorisation, risk management, disclosure and marketing to EU investors. AIFMD II updates it, and managers outside the EU often market through each country's private placement regime.
AIFMD II, an amending directive adopted in 2024, applied in most respects from April 2026 and added rules on loan origination funds, delegation, liquidity management tools and reporting. For managers outside the EU, the practical question is still how to market in each member state.
National private placement regimes differ widely: some require only a notification, others add depositary or reporting conditions, and a few are hard to use at all. Reverse solicitation, where an investor approaches the manager on its own initiative, is interpreted narrowly and is not a reliable fundraising strategy.
Worked example
A US manager wants to raise from LPs in the Netherlands, Germany and Sweden. Counsel files private placement notifications in each country, prepares the required investor disclosures and annual reporting, and advises that one target LP in a fourth country cannot be approached until the fund registers there.
Common questions about AIFMD
Can a US fund manager market to European investors?
Usually yes, through each country's national private placement regime, which requires registration or notification and ongoing disclosure. Rules and costs differ by country, and some are much harder to use than others.
What changed with AIFMD II?
It updated the original directive with rules on loan origination funds, delegation, liquidity management tools and supervisory reporting, with most changes applying from April 2026.