Fund Structuring for AIFs

Q: What are the categories of AIFs?

AIFs are grouped into categories reflecting their investment approach - broadly funds focused on areas like start-ups and social or infrastructure ventures, funds like private equity and debt funds, and funds using more complex strategies. We help identify the right category.

Q: What happens after the fund is structured?

Next steps typically involve preparing documentation and completing the registration or application process with the regulator, followed by fundraising, which we support through our AIF application process and documentation services.

Design the Right Structure for Your Alternative Investment Fund from the Start

The structure of an Alternative Investment Fund (AIF) shapes everything that follows — how it is regulated, how investors participate, how returns and taxes flow, and how the fund operates day to day. Getting the structure right at the outset is far easier than fixing it later. Fund structuring involves choosing the appropriate AIF category, legal form, and economic and governance terms so the fund aligns with its investment strategy, investor base, and regulatory obligations.

Our fund structuring services help fund managers and sponsors design robust, compliant AIF structures suited to their strategy and investors. We advise on category selection, structuring options, and the financial and tax considerations that make a fund work. These services lead naturally into our AIF application process and AIF documentation support, and connect with fundraising advisory.

Our Fund Structuring Services

Category Selection

Advising on the appropriate AIF category for your strategy and investors.

Structure Design

Designing the legal form and structure of the fund and its vehicles.

Economic Terms

Structuring management fees, carry, hurdle rates, and distribution waterfalls.

Tax Considerations

Advising on the tax implications of the structure for the fund and investors.

Governance Framework

Setting up the governance and roles that support sound fund operation.

Investor Considerations

Aligning the structure with the needs of your target investor base.

Benefits of Sound Fund Structuring

A structure aligned with your strategy, investors, and objectives
The right AIF category and legal form from the outset
Well-designed economic terms for managers and investors
Clarity on the tax implications of the structure
A sound governance framework supporting fund operation
A strong foundation for registration and fundraising

Frequently Asked Questions

What is an Alternative Investment Fund (AIF)?

An Alternative Investment Fund is a privately pooled investment vehicle that collects funds from investors to invest according to a defined strategy, in areas beyond traditional listed equity and debt. In India, AIFs are regulated by SEBI and are organised into categories based on their investment focus and strategy.

Why is fund structuring so important?

The structure determines how the fund is regulated, how investors participate, how economics and taxes flow, and how the fund operates. A well-designed structure supports your strategy and compliance from day one, whereas a poor structure can create tax inefficiency, operational friction, and problems that are hard to fix later.

What are the categories of AIFs?

AIFs are generally grouped into categories reflecting their investment approach — broadly, funds focused on areas such as start-ups and social or infrastructure ventures, funds like private equity and debt funds, and funds employing more complex or trading strategies. We help you identify the category that fits your intended strategy and investors.

What economic terms are set during structuring?

Structuring typically defines management fees, carried interest (carry), hurdle rates, and the distribution waterfall that governs how returns are shared between the manager and investors. Getting these terms right is central to aligning incentives and attracting investors, and we help you design them thoughtfully.

What happens after the fund is structured?

Once the structure is designed, the next steps typically involve preparing documentation and completing the registration or application process with the regulator, followed by fundraising. We support these subsequent stages through our AIF application process and documentation services so the journey is seamless.

Structure Your Fund for Success

Expert fund structuring services to build your AIF on the right foundation.