The Alternative Investor Fund (AIF)

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An AIF, is a Pan-European collective investment fund, for sophisticated and professional individuals. It can also be created as a multi-fund where the shares may be divided into different types of shares, in that way creating sub-funds of the AIF.

It is called ‘collective’ because many investors can take part in it and any benefit is distributed across the fund investors in accordance with a defined investment policy (not to be confused with UCITS which have stricter requirements). It is termed ‘Pan-European’ because the AIF has an EU passport and therefore any EU investor can join the fund.

When it comes to investors, these may be Qualifying Investors or Professional Clients.

A ‘Qualifying Investor’, must invest a minimum €100,000, declare in a document to the morocco mobile database AIF that he/she is aware of and accepts the risks that he/she is about to take, and finally, the investor must be; a body corporate or a body corporate which is part of a group, an incorporated body of persons or association, a trust, or an individual with assets of more than €750,000.

An investor who is a ‘Professional Client’ must have the experience, knowledge and skill to make his/her own investment decisions and to evaluate the risks. This investor type is generally; entities who are required/authorised/regulated to operate in financial markets, other bodies such as national and regional governments, public bodies that manage public debt, central banks, international and supranational institutions, and other institutional investors whose main activity is to invest in financial instruments. In addition, clients that do not meet the definitions above, may request to be Professional Clients.

A Maltese AIF scheme can be formed by any of the following corporate vehicles:

An Investment Company with Variable Share Capital (SICAV)
An Investment Company with Fixed Share Capital (INVCO)
A Limited Partnership
A Unit Trust/Common Contractual Fund
An Incorporated Cell Company.