Alternative Investment

alternative investment funds: AIFs nearing end of lifecycle may get a 2-year breather


Under the current rules, a close-ended AIF can have a fund life of minimum three years and maximum 10 years. However, this 10-year period can be further extended by two more years if the AIF obtains the consent of investors. Sebi is mulling an extension of another two years beyond this, implying a total fund life of 14 years. However, this may come with caveats.

The Securities and Exchange Board of India (Sebi) is considering a plan to allow Alternative Investment Funds (AIFs) to extend by two more years the lifecycle of investment products that are set to be wound up, said people with direct knowledge of the matter. The development assumes significance as several private equity and venture capital funds that are in the last few months of their lifecycle are finding it challenging to offload unlisted

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