Alternative Investment Fund
Where Institutional Strategies Meet Informed Private Capital.
Private equity, venture capital, private credit, and hedge funds — asset classes used by global endowments, now available in India under SEBI oversight.
₹120 Cr+
AIF Commitments Placed
80+
UHNIs & Family Offices
₹1 Cr
Minimum Investment
22+
AIF Funds Empanelled
Understanding AIF
What Is an AIF — And Why Does It Exist?
The world's best-performing endowments (Harvard, Yale) allocate 40–60% to alternatives. AIF is how India's sophisticated investors access the same private markets — under SEBI's regulatory framework, with full legal protection.
What Makes AIFs 'Alternative'
AIFs invest in assets that don't trade on public stock exchanges — private company equity, direct loans to businesses, infrastructure projects, and early-stage startups. These 'alternative' assets have a fundamental characteristic: they're illiquid, which means investors demand and historically receive a premium return for locking up capital. This 'illiquidity premium' — typically 4–8% above public market returns — is what attracts institutional capital to alternatives globally.
The Three Categories — Simplified
SEBI divides AIFs into three categories. Cat. I funds (VC, infrastructure) attract special policy incentives. Cat. II funds (private equity, private credit, real estate) are the most common — they cannot borrow for leverage and invest in a specific strategy as disclosed in the PPM. Cat. III funds (hedge funds, long-short) can use leverage and derivatives — highest complexity, highest potential return. Each category has different tax treatment and risk profiles.
Who Should Consider AIFs
AIFs are designed for investors with ₹10 crore+ in investable wealth who have already built a solid core portfolio of public market assets. The ₹1 crore minimum per fund ensures only serious, long-term investors participate. If you want exposure to India's private economy — not just the 5,000+ listed companies but the 50,000+ unlisted ones — AIFs are the regulated, transparent vehicle to access that universe.
| Parameter | Mutual Fund | PMS | SIF | ✦ AIF |
|---|---|---|---|---|
| Min. Investment | ₹500 | ₹50 Lakh | ₹10 Lakh | ₹1 Crore |
| Max. Investors per Fund | Unlimited | Unlimited | 1,000 | 1,000 |
| Invest in Private Companies? | ✗ | ✗ | Limited | ✓ Core strategy |
| Invest in Private Credit? | Debt funds only | ✗ | ✓ | ✓ Cat. II |
| Use Leverage? | ✗ | Limited | Limited | ✓ Cat. III |
| Liquidity | Daily (most) | Monthly | Monthly/Quarterly | Lock-in 2–10 yrs |
| Tax Pass-Through | ✗ (fund pays tax) | ✓ Direct | ✓ MF-like | ✓ Cat. I & II |
| Ideal Allocation Size | Any amount | ₹50L – ₹5 Cr | ₹10L – ₹2 Cr | ₹1 Cr+ |
Explore Fund Types
Which AIF Category Fits Your Capital?
Select a fund type to understand the strategy, target returns, and who it's best suited for.
Cat. I — Venture Capital
Venture CapitalFund life / horizon: 7 – 12 years
Category I AIFs include SEBI-registered Venture Capital Funds that invest in early-stage and growth-stage startups. The fund manager takes equity stakes in unlisted companies, nurtures them over 7–10 years, and earns returns through IPOs, strategic acquisitions, or secondary sales. One successful portfolio company can return the entire fund — and then some.
Min. Commitment
₹1 Crore
Target Return
20–35% IRR (top-quartile funds)
Best For
UHNIs comfortable with long horizons and illiquidity
Key Highlights
- Early-stage equity in India's next-generation startups
- Portfolio of 15–30 companies across seed to Series B
- Returns via IPO, strategic sale, or secondary placement
- Tax pass-through: gains taxed at investor level, not fund
- DPIIT-registered funds eligible for angel tax exemption
Our Advantage
AIF Access You Can Trust
Navigating private markets requires a guide with institutional rigour and your interests at heart.
Institutional-Grade Manager Selection
We evaluate AIF managers the way institutional LPs do — track record across vintages, team stability, investment thesis discipline, SEBI compliance history, and co-investment alignment.
Commitment Sizing & Portfolio Fit
We advise on the optimal AIF allocation within your total portfolio — typically 10–20% of investable wealth — so illiquid commitments don't strain your overall liquidity profile.
PPM Review & Legal Support
Private Placement Memoranda run to hundreds of pages. We review fee structures, distribution waterfalls, key-man clauses, and exit provisions — and brief you on what matters before you sign.
Capital Call & Distribution Tracking
We track every capital call and distribution across your AIF commitments and integrate them into your consolidated portfolio report so you always know your deployed capital and unrealised NAV.
Our Process
From First Conversation to LP Commitment
A five-step institutional process ensuring every rupee you commit goes into the right fund — understood, documented, and monitored for its entire life.
Wealth & Liquidity Assessment
We assess your investable wealth, existing liquidity, near-term cash needs, and current portfolio before recommending any illiquid AIF commitment.
Category & Strategy Selection
We help you decide between Cat. I, II, or III and the right sub-strategy — VC, PE, credit, or long-short — based on your return objectives and risk profile.
GP Introduction & PPM Review
We introduce you to the General Partner, facilitate a detailed fund briefing, and walk you through the key terms of the Private Placement Memorandum.
Commitment & Documentation
We assist with the Contribution Agreement, AML documentation, FATCA/CRS declarations, and coordinate with the fund's registrar for unit allotment.
Capital Call & Exit Monitoring
We track drawdown notices, portfolio company updates, and distribution events — keeping you informed at every stage of the fund's life.
Common Questions
AIF Demystified in Plain Language
Every question a sophisticated first-time AIF investor should ask — answered honestly.
*Target IRRs are indicative based on historical fund performance and are not guaranteed. AIF investments are illiquid and subject to market, credit, and liquidity risk. SEBI registration does not guarantee returns. Please read the Private Placement Memorandum (PPM) carefully before making any commitment.