SEBI Allows Co-Investment Within AIF Fund Structure

"SEBI’s move to allow Category I and II AIFs to offer co-investment opportunities within the fund structure is a long-awaited and highly progressive step. For one of the fastest wealth management companies like ours, which caters to a wide spectrum of sophisticated investors—including family offices, CXOs, and entrepreneurs—this change brings in the much-needed clarity, efficiency, and scalability to structure bespoke investment access.

Until now, co-investment opportunities were largely executed through parallel vehicles or informal arrangements, which often posed compliance, operational, and timing challenges. SEBI's enablement of co-investments directly within the AIF framework, empowers investors to take more concentrated asset allocation on high-conviction ideas while staying within the regulatory envelope of the fund, ensuring better alignment of interest and governance standards.