The Law Office of JM Donnelly

​​ALTERNATIVE INVESTMENT FUNDS

AN Alternative Investment Fund (AIF) is a collective investment undertaking that raises capital from a number of investors with a view to investing that capital in accordance with a defined investment policy for the benefit of those investors. A key distinction between an AIF and a UCITS is the greater flexibility available to AIFs in relation to investment strategies and asset classes. Depending on the applicable regulatory framework and the fund's strategy, an AIF may invest across a broad range of assets, including private equity, real estate, infrastructure, loans and commodities, and may employ strategies involving leverage, short selling and derivatives.

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AIF SERVICES:

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Fund Establishment & Structuring

• Advising on the establishment of the fund and selecting the appropriate legal and regulatory structure, taking into account the investment strategy, target investors, distribution requirements and applicable regulatory framework.

• Advising on the constitutional, governance and contractual arrangements necessary for the operation of the AIF.

Investment Restrictions & Strategy

• Advising on applicable investment restrictions and the extent to which the proposed investment strategy, asset classes and investment techniques can be accommodated within the chosen fund structure.

• Advising on the regulatory implications of investment strategies involving leverage, derivatives, short selling, private credit and loan origination, where applicable.

Governance & Oversight

• Advising on appropriate governance arrangements, decision-making processes, oversight responsibilities and the allocation of responsibilities between the fund, investment manager, AIFM, depositary and other service providers.

• Advising on delegation arrangements and the oversight of delegated functions in accordance with applicable regulatory requirements.

Liquidity & Redemption

• Advising on the fund's liquidity framework, including dealing frequency, redemption terms, notice periods and other liquidity-management mechanisms, having regard to the liquidity of the underlying investments and the needs of investors.

• Advising on the selection, calibration and implementation of appropriate liquidity-management tools, including their use in normal and stressed market conditions.

• Advising on the interaction between the fund's liquidity-management arrangements, redemption provisions and the liquidity profile of its underlying investments.

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