The Luxembourg law which implements the European Directive on Alternative Investment Fund Managers (AIFMD) became effective in July 2013. While this law regulates the managers of investment funds (AIFMs), it has had a significant impact on the alternative investment funds (AIF) themselves and has dramatically transformed the entire alternative investment industry. One of the most important opportunities arising from the introduction of the AIFMD is the possibility that Luxembourg alternative investment funds may be distributed to professional investors with an EU passport, provided that they are managed by fund managers authorised under the AIFMD and domiciled in Luxembourg or abroad.