The subject of this specialist postgraduate study was to analyze the legal framework regarding management companies that manage alternative investment funds at the EU level and at the level of the Republic of Croatia. The main objectives of this research are to show the historical background and process of adoption of Directive 2011/61/EU, and to analyze its provisions and the implementation into national legislation of the EU member states. Also, the aim of this paper is to analyze the legal framework for managers of alternative investment funds in the Republic of Croatia and the implementation of the provisions of the directive into the national legal system, taking into account the legal and business environment in the Republic of Croatia, as well as to show the advantages and disadvantages of the implementation. When implementing the directive into national legislation, it is necessary to define the objective to be achieved, then prepare an analysis that will show how to achieve regulatory objective and how to properly implement provisions into natonal legislation. But in Croatia, that was not the case when transposing Directive 2011/61/EU, which is implemented into the Alternative Investment Funds Act. As a result, the provisions of directive were literally transposed into national law, without taking into account the business environment of Croatian investment funds managers and they imposed many new obligations and expenses, but does not contribute to the purpose for which they were introduced.