3 Categories of AIF Explained Under a Min
AIF is a privately pooled vehicle that collects money from sophisticated investors and deploys it into things beyond stocks and bonds. There are three categories and each one does a completely different job. Category One: Venture capital, infrastructure, SME and government backed investments. Investment horizon is 7 to 10 years and it is fully illiquid. Category Two: Private equity, real estate, private credit and pre IPO investments. This is the biggest category with around 70% of total commitments. Horizon is 5 to 7 years and fully illiquid. Category Three: Long only equity, long short equity and hedge fund strategies. The only AIF category that can take real short positions and use leverage Same product name. Three very different games. #shorts
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