What are AIF Category II Funds?
SEBI Category II AIFs do not use leverage except for day-to-day operational requirements. They invest in debt and equity at various stages of a company's lifecycle. Unlike Cat I, they do not receive special government incentives but target superior risk-adjusted returns. Minimum investment is ₹1 Crore.
- Debt Funds: Performing credit and structured debt to growing companies
- Distressed Assets: Turnaround opportunities in stressed or NPA assets
- Private Equity: Growth and buyout investments in unlisted companies
- Private Credit: Bespoke credit solutions with equity-linked upside
- Real Estate: Commercial, residential, and industrial property funds
Sub-categories of AIF Category II
Category II covers 9 distinct sub-categories across 25 listed funds:
- Private Credit Funds — 9 funds
- Real Estate Funds — 5 funds
- Private Equity Funds — 6 funds
- Venture Capital Funds — 4 funds
- SME Funds — 1 fund