An alternative investment fund (AIF) is any collective investment that is not a UCITS including investment vehicles that are:

• open-ended
• closed-ended
• listed
• unlisted

An alternative investment fund manager (AIFM) is defined as an legal person whose regular business is managing one or more AIFs.

The directive regulates the marketing of alternative investments to professional investors providing two options to managers:

1. EU marketing passport
2. Meber States’ private placement regimes

It includes disclosures and reporting requirements including information that needs to be made available to potential investors.