AIF commitments cross Rs 9.5 trillion till September 2023, shows data

Investment commitments in Alternative Investment Funds (AIFs) surged to Rs 9.54 trillion as of September 2023, recording a jump of 13 per cent quarter-on-quarter and nearly a 36 per cent jump year-on-year. 

According to data by the market regulator, the total funds raised and investments made jumped to Rs 3.88 trillion and Rs 3.53 trillion, respectively, till September last year. Total investments, as of September 2022, stood at Rs 3.07 trillion while the funds raised were at Rs 3.34 trillion.

AIFs are pooled investment vehicles for investing in assets like startups, venture debt, real estate, infrastructure, distressed assets, and other listed and unlisted companies. AIFs cater to high networth individuals and other financial institutions.

Category II AIFs remain the biggest contributor to the investment commitments at Rs 7.82 trillion and an invested amount of Rs 2.48 trillion.

The investment commitments are usually received in tranches from investors by the fund managers and are reflected in the total funds raised.

Further, total commitments in the category III AIFs crossed Rs 1 trillion for the first time while a total of Rs 78,686 crore has been invested. These funds invest mostly in listed companies. 

Total commitments in Category I AIFs, which include infrastructure funds, venture capital fund and social venture funds, stood at Rs 68,780 crore.