Regulated activity

Managing alternative investment funds

A collective investment scheme that is not UCITS, private equity, hedge and real estate funds among them, needs a fund manager licence under AIFMD Article 4(1)(w) and Annex I. Once authorised, an alternative investment fund manager (AIFM) can market and manage those funds to professional investors across the EEA on one passport.

Last verified 2026-09-24Markdown · Data (CC BY 4.0)
Managing alternative investment funds: regulated activityAIFMD

Definition

Performing portfolio management and risk management for funds that are not UCITS, such as hedge, private equity and real estate funds.

Which licence you need

Licence families that typically permit this activity:

Where it can be licensed

Jurisdictions where managing alternative investment funds can be licensedCyprusCzech RepublicEstoniaFranceGermanyIrelandLuxembourgNetherlandsPolandSpainSwitzerlandUnited KingdomAbu Dhabi Global Market (ADGM)BermudaBritish Virgin IslandsCayman IslandsDubai International Financial Centre (DIFC)Seychelles
Licences in the Atlas that permit this activity
EU/EEA passportDomestic
Abu Dhabi Global Market (ADGM): Fund manager licence✓
Bermuda: Fund Administrator Licence✓
British Virgin Islands: Fund manager licence✓
Cayman Islands: Regulated Mutual Fund✓
Cayman Islands: Registered Private Fund✓
Cyprus: Alternative Investment Fund Manager (AIFM) authorisation✓
Cyprus: Sub-threshold Alternative Investment Fund Manager registration✓
Czech Republic: Sub-threshold Alternative Investment Fund Manager registration✓
Czech Republic: Investment Company / Fund Manager licence✓
Dubai International Financial Centre (DIFC): Fund manager licence✓
Estonia: Small fund manager registration without activity licence✓
Estonia: Operating licence as a fund management company✓
France: Portfolio management company authorisation✓
Germany: Investment management company licence✓
Ireland: Alternative Investment Fund Manager (AIFM) Authorisation/Registration✓
Luxembourg: Alternative investment fund manager (AIFM) authorisation✓
Netherlands: Alternative Investment Fund Manager (AIFM) licence✓
Poland: Investment Fund Company licence✓
Poland: Alternative Investment Company Manager registration / licence✓
Seychelles: Fund Administrator's Licence✓
Spain: Fund manager licence (SGIIC)✓
Switzerland: Fund management company licence✓
Switzerland: Manager of collective assets licence✓
United Kingdom: Fund manager licence✓

Frequently asked questions

What is the sub-threshold exemption for small fund managers under AIFMD?

A manager whose assets under management stay below the statutory threshold can register nationally instead of seeking full authorisation, a lighter regime with far less prudential reporting. The trade-off is that a sub-threshold manager's funds lose the cross-border EU marketing passport.

Must an alternative investment fund appoint an independent depositary?

Yes. Every fund a fully authorised AIFM manages must appoint an independent depositary, which oversees cash flows, verifies asset ownership and safekeeps the fund's assets. That gives investors statutory protection against misappropriation or operational default.

Last verified 2026-09-24Author Danil Marmysh, Founder & CEO, ProtegraReviewed by Anastasia Sidorenkova, Head of Licensing, ProtegraReport an errorReference information, not legal advice.

Sources

  1. AIFMD Art. 4(1)(w) and Annex I · retrieved 2026-09-24

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