The Alternative Investment Fund Managers Directive (AIFMD) regulates alternative investment funds. Alternative Investment Fund Administrator is their counterpart. They handle money in the same manner as hedge funds registered in the European Union do. They are particularly interested in problems involving private equity and real estate investment companies. They protect investors and help to reduce some of the systemic risk associated with funds. Similarly, the AIFMD requires that compensation plans be designed in such a manner that they do not incentivize excessive risk-taking. It aims to safeguard investors by imposing tighter regulations on what and how information is provided.

https://www.theascent-group.com/alternative-investment-funds/