The AAEF was established as part of a United States initiative to promote the private sector development in formerly Communist countries in Europe and Central Asia.

In addition, AAEF provides its portfolio investments with training to establish best business practices that incorporate acceptable financial reporting standards, as well as guidance in enhancing management capabilities and recruiting skilled personnel.

The AAEF endeavors to identify and invest in enterprises that have good prospects of being commercially viable and are filling an under-served sector of the Albanian economy.

Such investments should be capable of meeting international standards of “best business practices”, promote local manufacturing, create jobs and exports, and be environmentally safe.

Among the AAEF's notable investments are the modernizing of Tirana International Airport "Mother Teresa" and establishing the American Bank of Albania (ABA).