Alternative Investment Funds (AIFs)
What are the Alternative Investment Funds (AIFs)?
Alternative Investment Funds or otherwise called “AIF’s” are collective investment undertakings, including investment compartments, which:
a. Raise capital from a number of investors, with an aim to invest these funds in assets to generate returns for the benefit of those investors
b. are not considered as ‘undertakings for collective investment in transferable securities’ or ‘UCITS’ under the Open Ended Undertakings for Collective Investment Law.
Firms who wish to develop more than one investment policy, shall set up an AIF with more than one investment compartment, (‘umbrella AIF’) where each investment compartment will invest the capital raised according to its defined investment policy.
An AIF may be established in one of following legal forms:
Common fund, Investment company or Limited partnership, with or without separate legal personality
The set up can be in the form of:
– Self-managed AIFs; or
– Externally managed AIFs
In case of an externally managed AIF, the external manager may operate as:
1. Alternative Investment Fund Managers (‘AIFMs’)
2. A UCITS Management Company
3. Small AIFMs/Mini Managers
4. An Investment Firm