Master AIF meaning

In practice, a master AIF is the alternative investment fund at the top of a master‑feeder structure into which one or more feeder AIFs invest in units or shares, or obtain exposure (including through derivatives). It is a defined term in the Alternative Investment Fund Managers Directive, Directive 2011/61/EU (AIFMD), Article 4(1)(y), identified by reference to the feeder AIF conditions in Article 4(1)(m). Across England & Wales, Scotland and Northern Ireland, the concept and definition are carried through the onshored UK AIFMD regime (the Alternative Investment Fund Managers Regulations 2013 and the FCA Handbook, FUND). In Ireland, it is implemented by the European Union (Alternative Investment Fund Managers) Regulations 2013 and Central Bank rules. Usage and effect are broadly consistent across these jurisdictions. - The master AIF pools assets, while feeder AIFs channel investor capital or exposure to it. - Establishing a master‑feeder structure triggers AIFMD obligations on the AIFMs and depositaries of both master and feeder, including information‑sharing, reporting, transparency and risk management. - Commonly used for cross‑border hedge, private equity and real estate fund structures to achieve scale and operational efficiency.