Article 69 of the Alternative Investment Fund Managers Directive (AIFMD) required the European Commission to start reviewing the directive in 2017, but the process was delayed largely as a result of Brexit. Before the summer break on July 19, 2023, inter-institutional negotiations with representatives of the European Parliament, the Council of the E.U. and the European Commission reached a compromise on the final text of AIFMD 2.0. To assist alternative investment fund managers in understanding and preparing for AIFMD 2.0, a panel at Dechert’s recent Luxembourg Annual Funds Conference discussed the current state and future direction of the amended directive. The program featured Dechert partners Angelo Lercara (Munich), Colin Sharpsmith (London), Christine A. Renner (Luxembourg), Cyril Fiat (Paris) and Patrick Goebel (Luxembourg). This first article in a two-part series details material changes to the delegation requirements under the new rules, updates to the Annex I services and certain issues introduced by mandated liquidity management tools. The second article will analyze relevant changes affecting loan origination funds, fallout from the lack of revisions to marketing practices under AIFMD and the ramifications of a handful of omitted items under the new rules. See “The European Commission and ESMA Lay Groundwork for AIFMD II” (Nov. 3, 2020); and “KPMG Reports on AIFMD’s Efficacy Five Years After Implementation” (Apr. 16, 2019).