Alternate Investment Funds (AIF)
- Alternative Investment Fund (AIF) refers to a privately pooled investment entity that directs funds into alternative asset classes like private equity, venture capital, hedge funds, real estate, commodities, and derivatives. Typically, AIFs attract investments from high net-worth individuals (HNIs) and institutions due to the substantial investment amounts required. These funds are regulated by the Securities and Exchange Board of India (SEBI).
- An AIF can be established as a trust, company, limited liability partnership, or corporate body. Notably, a considerable number of SEBI-registered AIFs are structured as trusts.
- AIFs are categorised as CAT I, CAT II & CAT III based on their investment strategy. CAT I Funds invest in start-up or early-stage ventures. This can also extend to social ventures or SMEs or infrastructure or other sectors or areas which the government or regulators consider as socially or economically desirable. CAT II do not use leverage or debts other than to cover their day-to-day operational expenses. CAT III funds employ diverse or complex trading strategies in their investment. They may use leverage through listed or unlisted derivatives and buy stocks or other allowed assets.
- As part of our comprehensive services, we assist clients in navigating the relatively new and niche world of Alternative Investment Funds (AIFs). Given the evolving nature of AIFs, track record and experience are paramount. These assets typically require specialized skills, which are often concentrated among key individuals within investment management teams. Therefore, assessing team consistency, cohesion, and their alignment with performance outcomes is crucial. Our service includes a detailed review of investment strategies to ensure you are accessing genuinely alternative assets that complement your existing portfolio and align with your investment values and risk appetite. Alternative assets, by their very nature, require specialized advice, and we are here to provide that expertise, ensuring these investments become a beneficial part of your portfolio. Reach out to us if you’re looking to gain insights into the world of Alternate Investments and seek comprehensive data that’ll help to evaluate performance and ensure these investments become a beneficial part of your portfolio.