The Alternative Investment Fund Managers Directive (AIFMD) is a regulatory framework established by the European Union to govern hedge funds and private equity funds. Fund managers targeting EU investors must comply with AIFMD requirements, which include registration, reporting, and transparency obligations. This compliance ensures that funds meet stringent standards for investor protection and market integrity. Adhering to AIFMD can also enhance a fund’s credibility in the EU market, opening doors to more investment opportunities while navigating complex regulatory landscapes.