AIFMD II Factsheet

What the evolving European framework means for fundraising, fund structuring and accessing investors through Jersey.

For alternative fund managers raising capital in Europe, the introduction of AIFMD II brings changes across areas including delegation, liquidity management, loan origination and regulatory reporting.

But when considering where to domicile a fund or establish a manager, one of the most important questions remains the same: where are your investors?

For managers targeting professional investors in the UK and selected European markets, Jersey provides established and efficient routes to market, including access to EU investors through National Private Placement Regimes (NPPRs).

AIFMD II amends the EU’s Alternative Investment Fund Managers Directive (AIFMD), introducing changes designed to further harmonise the regulation of alternative investment funds across the EU.

EU Member States were required to transpose AIFMD II into national law by 16 April 2026, with certain provisions relating to supervisory reporting applying from 16 April 2027.

Key areas of change include:

• Delegation arrangements – enhanced changes to the information and regulatory oversight relating to the delegation of portfolio and risk management functions.
• Liquidity management – new requirements for managers of open-ended AIFs around the selection and use of liquidity management tools.
• Loan origination – a new harmonised framework for AIFs that originate loans, including requirements relating to leverage, risk retention and liquidity.
• Supervisory reporting – changes designed to broaden and further harmonise the information available to regulators.
• Depositary and custody arrangements – targeted changes to the existing framework.

For fund managers, the impact will depend on factors including their location, investment strategy, fund structure and where they intend to raise capital.

Jersey is a ‘third country’ for the purposes of AIFMD.

As a third country, ersey provides established routes for Jersey AIFMs and non-EU AIFs to access professional investors in EU Member States through individual countries’ NPPRs, where available and subject to the requirements of the relevant Member State.

AIFMD II also updates certain conditions relevant to third-country access, including requirements to tax cooperatioon and the EU’s list of high-risk and non-cooperative jurisdictions for AML.

Jersey has updated its framework to reflect AIFMD II and maintain its European market access.

Importantly, for Jersey, the Jersey Financial Services Commission has confirmed that the impact of AIFMD II on Jersey business is minimal, as most of the changes apply to full-passport AIFMs and AIFs and do not affect the NPPR through which Jersey retains its third country market access. Establishing a fund or manager within the EU is therefore not necessarily the only route to European investors.

The right approach should be determined by your investment and fundraising strategy – including which investors you want to reach and where those investors are located.

When deciding where to establish a fund and its manager, the question is not simply whether a jurisdiction sits inside or outside the EU. Manager location, fund domicile and distribution strategy are interconnected decisions, and the AIFMD requirements that apply will depend on the particular combination.

Instead, managers should consider the geographical profile of their prospective investors and determine the most appropriate route to reach them.

For managers seeking broad distribution across the EU, an EU structure and AIFMD marketing passport may form part of that assessment.

For managers targeting professional investors in selected European markets, Jersey’s NPPR model can provide an established and proportionate alternative.

Jersey also provides an established route to professional investors in the UK through the UK’s private placement regime.

As the EU and UK AIFM frameworks evolve separately, Jersey maintains distinct regulatory frameworks supporting access to both.

AIFMD II is particularly relevant for managers operating in the growing private credit market.

The Directive introduces a harmonised European framework for loan-originating AIFs, including requirements relating to areas such as leverage, diversification, risk retention and liquidity management.

For managers establishing private credit strategies and considering European investors, this makes it increasingly important to consider regulatory requirements alongside fund domicile, investor location and distribution strategy from the outset.

Jersey supports a wide range of alternative investment strategies, including private credit and other debt-focused structures, and its established NPPR framework can provide a route to professional investors in European markets.

With AIFMD II now in force across the EU , managers considering a new fund launch or European fundraising strategy should ask:

Where are our investors?
Identify the markets in which you realistically expect to raise capital rather than assuming that pan-European distribution will be required.

What market access do we need?
Consider whether targeted access through NPPRs or broader distribution through an EU passport is best aligned with your fundraising strategy.

How does AIFMD II affect our investment strategy?
Consider the provisions most relevant to your fund, particularly for loan-originating or open-ended strategies.

What are our operational requirements?
Review the potential implications for delegation, liquidity management, regulatory reporting and your wider operating model.

Which domicile best supports our strategy?
Consider market access alongside factors such as speed to market, flexibility, regulatory requirements, service-provider expertise and overall operating requirements.

There is no single approach to European fundraising that will be right for every alternative investment manager.

For managers considering Jersey, the starting point is simple: where are your investors and what is the most efficient way to reach them?

Jersey’s position as a well-established international finance centrewith established routes to both UK and EU investors enables managers to build a structure around their investor base and wider commercial objectives.

For those targeting professional investors in the UK and key European markets, Jersey provides established routes into both.

Speak to our Funds team to find out more about establishing a fund or fund management presence in Jersey and accessing professional investors in the UK and Europe.