AIF Category I, II and III registration, fund structuring, GP LP arrangements, carried interest waterfall, co investment structures and SEBI AIF compliance.
Short, direct, on the record.
The minimum investment by any investor is INR 1 crore for Category I and II AIFs, and INR 1 crore for Category III. The minimum corpus of the fund is INR 20 crore (INR 10 crore for angel funds). Employees and directors of the fund manager can invest INR 25 lakh. Accredited investors have relaxed thresholds under the 2024 framework.
Category I and II AIFs have pass through taxation under Section 115UB. Income (other than business income) passes through to investors and is taxed in their hands. Carried interest is typically structured as a share of capital gains flowing to the GP. Category III AIFs are taxed at the fund level on most income categories.
Yes. Foreign investors can invest in Indian AIFs subject to FEMA regulations, RBI pricing guidelines and the FDI policy. The AIF must comply with downstream investment restrictions applicable to the sectors in which it invests. Offshore investors must also consider DTAA benefits and treaty shopping provisions.
SEBI aims to process AIF applications within 30 working days of receiving a complete application. In practice, the process takes 3 to 6 months including queries, document submission, and SEBI committee review. Incomplete applications face delays.
Share the fund strategy, category, investor base and the registration or structuring need for a preliminary assessment.