Cryptococcus neoformans is an encapsulated yeast and an obligate aerobe that can live in both plants and animals. Its teleomorph is Filobasidiella neoformans, a filamentous fungus belonging to the class Tremellomycetes. It is often found in bird excrement. Cryptococcus neoformans is an encapsulated fungal organism and it can cause disease in apparently immunocompetent, as well as immunocompromised, hosts.