Alternative Investment Funds (AIFs) are funds established or incorporated in India for the purpose of pooling in capital from Indian and foreign investors as per an pre-decided policy.
As per the SEBI (Alternative Investment Funds) Regulations, 2012, AIF shall seek registration in one of the categories mentioned below:
- Category-I AIFs consist of VCFs, Small and Medium Enterprises (SME) funds, infrastructure funds and social venture funds (SVFs).
- Category-II AIFs consist of private equity funds, debt funds and
- Category-III AIFs are in the nature of domestic hedge fund structures.
CARE Advisory Research and Training Limited has developed the grading methodology for grading of the AIF schemes. The AIF grading methodology involves comprehensive analyses of sponsor and asset manager’s experience and expertise in the respective segments or asset classes they manage, investment-related processes, risk management systems and operations & technology-related parameters.
CARE Advisory Research and Training Limited’s grading of AIF schemes are an opinion on the asset selection ability and asset management capabilities in their respective segments viz. industry / sub-industry / asset class in which AIF intends to invest.