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In many cases, it's that in-between stage of both leading/managing teams while also doing.
I have also seen ACDs who were promoted to that position but don't do any managing at all. But it means they're at least in a position to lead the project and be the face to the clients.
It really, truly depends on the agency.
I've been places where ACD is simply a higher title for a CW or AD.
I've been places where ACDs basically ran the agency.
Most agencies are somewhere in the middle.
Don’t some of the better agencies not have ACDs? You’re either a CD or you’re not?