The purpose of an Alternative Investment Fund (AIF) is the raising of capital from a number of investors and the collective investment of funds, within a defined investment strategy. The regulated structure of AIFs ensures a coherent framework and implementation of appropriate investor protection mechanisms.
Such vehicles provide an arrangement that enables a group of investors to add collectively their assets, have these professionally managed and invested by independent managers/entities and, extract earnings in a tax efficient manner.
Furthermore, the availability of flexible structuring options and ring-fencing tools, caters for multiple investment compartments; therefore allowing the parallel management of different pools of assets with distinct investment policies.