An Alternative Investment Fund Manager (AIFM) is the entity responsible for managing one or more Alternative Investment Funds (AIFs). This includes both the portfolio management (i.e., investment decision-making) and risk management functions of the fund.

AIFMs may be internal (where the AIF is self-managed) or external (where a third-party manager is appointed). The AIFM is accountable for ensuring that the fund operates in accordance with its mandate and within the regulatory framework of its jurisdiction.

In the European Union, AIFMs are regulated under the Alternative Investment Fund Managers Directive (AIFMD). This regulatory framework sets out rules around capital requirements, risk controls, valuation, disclosure, and investor protection for firms managing AIFs, such as private equity funds, hedge funds, real estate funds, and venture capital funds.

AIFMs are required to:

• Ensure proper governance and operational oversight of the fund

• Maintain sufficient regulatory capital and liquidity buffers

• Implement appropriate risk management and compliance frameworks

• Report to national competent authorities and provide detailed disclosures to investors

The AIFM may delegate certain functions, such as portfolio management or administration, but it retains ultimate responsibility for the fund's activities and compliance.