<\/span><\/h3>\nAlternative Investment Funds comprise two principal categories. A Retail Investor Alternative Investment Funds comprise two principal categories, a Retail Investor Alternative Investment Fund and a Qualifying Investor Alternative Investment Fund. There are investment diversification and borrowing restrictions applicable.<\/p>\n
Certain investment and borrowing restrictions do not apply to a Qualifying Investor Alternative Investment Fund. The previous Qualifying Investor Fund regime was replaced by the new regime. Qualifying investors are institutions or persons with defined high net worth. See the separate sections. A QIAIF is not subject to any investment, borrowing or leverage limits. There is an obligation to spread risk.<\/p>\n
The Retail Investor AIF replaced the previous Non-UCITS investment fund category.\u00a0<\/strong>They are subject to fewer investment and asset restrictions than applied under the UCITS scheme. There are, however, significant investment and borrowing restrictions, including that borrowing may not exceed 25% of net assets.<\/p>\nA QIAIF may have an EU or non-EU Authorised Investment Fund Manager. The same applies to RIAIF. The authorised may market AIF to professional investors in the EU States.<\/p>\n
<\/span>AIF Fund Managers<\/span><\/h3>\nThe Alternative Investment Fund Managers Directive provides harmonised conditions for the operation of Alternative Investment Funds Managers. They may use passport rights in the EU to market Alternative Investment Funds, including QIAIF and RIAIF, to professional investors. They may manage AIFs in other States.<\/p>\n
The AIFMD applies to hedge fund managers, private equity fund managers, real estate fund managers and operators of alternative investments operating and marketing to investors in the European Union.<\/p>\n
UCITS seeks to update the regime to bring it in line with AIFMD. It provides for<\/p>\n