Alternative Investment Funds (AIFs) is a large-scale Mutual Funds designed for sophisticated investors. Like Mutual Funds, AIFs pool money from multiple investors to create a diversified investment portfolio managed by professional fund managers. However, AIFs operate on a larger scale and with greater flexibility in investment strategies, often targeting high-net-worth individuals and institutional investors. They can invest in a wider array of assets, including private equity, real estate, and hedge funds, offering potentially higher returns. While both are regulated by the Securities and Exchange Board of India (SEBI), AIFs typically require a higher minimum investment, reflecting their larger size and broader investment scope. Essentially, AIFs offer the benefits of Mutual Funds but are designed for those seeking more significant and varied investment opportunities.

SEBI classifies AIFs into three categories: Category I AIF: Funds that invest in start-ups, early-stage ventures, social ventures, SMEs, infrastructure, or other sectors deemed as socially or economically desirable by the government or regulators. Category II AIF: Funds that do not fall under Category I and III. Category III AIF: Funds that employ diverse or complex trading strategies in listed or unlisted derivatives.

AIFs in India are regulated by Securities and Exchange Board of India ("SEBI")

SEBI (Alternative Investment Funds) Regulations, 2012 provide the legal framework for the registration, operation, and reporting requirements for AIFs

Yes. GHL India Ventures Fund is registered with SEBI. The SEBI AIF license no. is IN/AIF2/24-25/1517

GHL India Ventures Fund

GHL India Ventures Fund is registered as Category II AIF.

Investors can be Indian, Non-Resident Indians (NRIs), or foreign, Indian entities or Foreign entities. The minimum commitment amount for an investor is typically ₹1 crore.

Key documents include the Private Placement Memorandum (PPM), draft Contribution Agreement, Investor on-Boarding proposal, and any other documentation outlining the terms and conditions of the investment.

Trustee: A SEBI-registered trustee is appointed and is responsible to protect assets, ensure efficient management, ensure compliance, facilitate income distribution and risk management. Orbis Trusteeship Services Private Limited (CIN: U67190HR2020PTC086288) is being appointed as Trustee of GHL India Ventures (SEBI Reg. No. IND000000602). Sponsor: The sponsor is responsible for setting up the AIF and contributes a certain amount of the corpus, known as the sponsor commitment. Manager: The manager makes investment decisions and is responsible for managing the fund’s portfolio according to the defined investment strategy. Watermount Ventures LLP a limited liability partnership under the provisions of Limited Liability Partnership Act 2008, (LLPIN: ACE-0868) is the Investment Manager to the Trust and all its schemes.

Mr. Naman Damijha is the Fund Manager. You can review his brief profile by clicking this link. https://ghlindiaventures.com/about.html

Investors typically pay a management fee to the Asset Management Company, which is a percentage on the corpus. There may also be performance fees, which are a percentage of the profits generated by the fund, over and above the hurdle rate.

Performance is evaluated based on the Net Asset Value (NAV) of the fund, which reflects the market value of the fund’s investments. As per SEBI AIF Regulation the Assets of the fund are valued by IBBI registered Valuer.

AIFs are required to submit periodic reports to SEBI, including monthly, quarterly and annual reports on their activities and financial status. They must also provide reports to investors as per the terms of the agreement.

Category I and II AIFs are pass-through entities for tax purposes, meaning income is taxed at the investor level.

Exit options depend on the fund’s strategy and the terms of the investment agreement. These may include buyback by the fund, secondary sales, public offerings, or other exit strategies specified in the agreement.

Risks include market risk, liquidity risk, credit risk, and operational risk. The specific risks depend on the investment strategy and portfolio of the AIF.

Investors can address grievances by approaching the grievance redressal mechanism of the AIF. If unresolved, they can approach SEBI through the SEBI Complaints Redress System (SCORES).