Alternative Investment Funds, explained with care
AIFs can broaden a portfolio beyond listed markets, but they come with longer lock-ins, higher minimums and risks that call for careful consideration.
Overview
Alternative Investment Funds pool capital from eligible investors to pursue strategies such as private equity, venture, private credit and other specialised approaches. They are regulated by the securities regulator and grouped into categories according to their structure.
We help eligible investors understand what a given fund does, how long capital may be committed and what could go wrong, so that any allocation is a considered part of the overall plan.
What clients typically look for
- Diversification beyond listed equity and traditional debt
- Clarity on the strategy, manager track record and fund terms
- Understanding of capital commitment, drawdown schedules and exit timelines
- A sensible allocation size relative to total wealth and liquidity needs
Key considerations and risks
- AIFs are for eligible investors only and typically require a high minimum commitment
- Capital may be locked in for years and there may be no easy exit
- Valuations of unlisted assets can be less frequent and less transparent than listed markets
- Fees may include management fees, performance fees and other expenses
- Some strategies concentrate in a small number of investments, which raises risk
- Returns are not guaranteed and capital loss is possible
How the conversation works
Confirm suitability
We discuss your liquidity needs, horizon and whether an AIF allocation is appropriate.
Review the offering
We help you read the private placement memorandum, strategy and fee terms.
Consider allocation size
We look at how much, if any, belongs in illiquid strategies within your plan.
Commit and track
If you proceed, we help you follow drawdowns, reporting and portfolio impact.
Frequently asked questions
AIFs are open to investors who satisfy the regulatory eligibility and minimum commitment criteria. Individual circumstances determine whether this applies.
It means you may not be able to withdraw your money when you want. Many AIFs have fixed tenures and limited or no early exit options.
No. They suit a limited group of eligible investors who can accept illiquidity and higher risk, and who have other assets to meet near-term needs.
Important information
Investments in AIFs are subject to market, liquidity and other risks and are open to eligible investors only. Read the placement memorandum carefully. Eligibility and availability depend on individual circumstances and applicable regulations. This page is general information and not personalised advice. See our risk disclosures.
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