Appointing an AIFM

An AIFM, or Alternative Investment Fund Manager, is (in general terms) a regulated fund manager which all European alternative funds (i.e. funds designed for professionals, not the general public) have to appoint. The AIFM must be "registered" (for small "sub-threshold" AIFs, or Alternative Investment Funds) or "authorized" for above-threshold AIFs. The relevant EU law is the AIFMD, or Alternative Investment Fund Managers Directive, and it applies to (in general terms) collective investment undertakings which raise capital from a number of investors with a view to investing it in accordance with a defined investment policy (AIFMD Article 4(1)(a) – see top of 16th page in the link). It therefore applies to many European funds, but not to investment structures designed for individuals or families, and not to Securitisations.

Therefore, Securitisations are not required to appoint an AIFM.

However, a Securitisation may appoint an AIFM to provide risk management services as an extra layer of protection for investors.