An alternative investment fund, or AIF, is a fund that invests in assets other than those held by traditional funds (UCITS): private equity, private debt, real estate, infrastructure or alternative strategies. Governed by the European AIFM Directive and supervised in France by the AMF, AIFs include most of the vehicles that provide access to private markets: FCPR, FPCI, FPS, SCPI, OPCI. This guide defines the AIF, explains its regulatory framework and main categories, who can invest and how to access them.
What is an alternative investment fund (AIF)?
European regulation distinguishes between two broad families of funds. On one side, UCITS (Undertakings for Collective Investment in Transferable Securities): "traditional" funds invested in listed, liquid assets (equities, bonds), tightly regulated and open to the general public. On the other, AIFs: every fund that is not a UCITS.
This definition by exclusion is broad: it covers private equity and private debt funds as well as unlisted real estate (SCPI, OPCI), infrastructure and alternative strategies. What these vehicles have in common: they invest in less liquid assets, follow more specialised strategies and aim for low correlation with listed markets.
Key takeaways
- An AIF is any fund that is not a UCITS: private equity, private debt, real estate, infrastructure…
- Its framework is set by the European AIFM Directive, under AMF supervision in France.
- It is the regulatory umbrella covering most vehicles that give access to private markets.
The regulatory framework: AIFM Directive and AMF
AIFs are governed by the European AIFM Directive (Alternative Investment Fund Managers), transposed into French law and supervised by the Autorité des marchés financiers (AMF), the French financial markets authority. The directive regulates the management companies more than the funds themselves: authorisation, capital requirements, risk management, independent valuation, depositary, and transparency towards investors and the regulator.
For investors, this provides a clear framework: an AIF is managed by an authorised management company subject to strict obligations. Some AIFs are "authorised" by the AMF, others are simply "declared", depending on their target investors and level of regulatory constraint.
(Sources: Directive 2011/61/EU of 8 June 2011, EUR-Lex; AMF, Q&A on the transposition of the AIFM Directive into French law (in French))
The categories of alternative investment funds
The AIF umbrella covers a wide range of vehicles, which differ by asset class, target investors and tax treatment. In France, the main ones are the following.
| AIF category | Asset class | Investors |
|---|---|---|
| FCPR / FCPI / FIP | Private equity | Retail investors (possible tax benefits) |
| FPCI | Private equity | Professional / sophisticated investors |
| FPS | Multi-strategy (flexible) | Professional / sophisticated investors |
| SCPI / OPCI | Unlisted real estate | Retail investors |
| Private debt / infrastructure funds | Private debt, infrastructure | Professional / sophisticated investors |
Private equity vehicles (FCPR, FPCI…) are one of the largest families of AIFs. FCPR, FCPI and FIP are French private equity funds open to retail investors, while the FPCI is reserved for professional investors.
(Source: AMF, educational guide on private equity funds: FCPR, FCPI, FIP (in French))
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Who can invest in an AIF?
Access depends on the fund category. Some AIFs are open to retail investors, often with tax benefits (FCPR, FCPI, FIP, SCPI). Others, the most institutional ones such as FPCIs and FPSs, are reserved for professional or sophisticated investors, with a minimum ticket generally of at least €100,000 (€30,000 in some cases).
In all cases, going through a financial adviser (independent wealth manager, family office or private bank) is the recommended route for private clients: the adviser checks that the fund suits the investor's situation and risk profile.
Benefits and risks of AIFs
The benefits of AIFs
AIFs provide access to asset classes absent from traditional funds: private equity, private debt, infrastructure, unlisted real estate. They offer genuine diversification, low correlation with listed markets and higher long-term return potential, while financing the real economy. Past performance is not a reliable indicator of future performance.
The risks
On the other hand, AIFs are less liquid than UCITS: capital is often locked up for several years. They carry a risk of capital loss, higher fees and a periodic, estimated valuation for unlisted assets. The quality of the management company (selection, monitoring, valuation) is therefore decisive.
Private equity, private debt, infrastructure: a selection built for wealth management professionals.
Investing in AIFs with Private Corner
Private Corner is a French digital asset management company authorised by the AMF (no. GP-20000038, verifiable on the AMF GECO database), specialising in alternative investment funds in private markets: private equity, private debt, infrastructure, co-investment. Its fully digital platform gives wealth management professionals and their clients access to a selection of institutional-grade AIFs, usually reserved for large investors, from €100,000 (and sometimes from €20,000 through certain vehicles). The selection relies on in-depth due diligence and leading fund managers.
👉 Learn more: how to invest in private markets
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Conclusion
The alternative investment fund is the regulatory umbrella that groups together, alongside traditional UCITS, all funds invested in less liquid and more specialised assets: private equity, private debt, real estate, infrastructure. Governed by the AIFM Directive and supervised by the AMF, AIFs offer diversification, low correlation and return potential, at the cost of reduced liquidity and risks that need to be managed. Access, from retail vehicles (FCPR, SCPI) to institutional ones (FPCI, FPS), goes through an authorised management company, most often via an adviser for private investors.
Disclaimer
This is a marketing and informational communication that does not constitute investment advice, a personalised recommendation or a solicitation.
Private Corner is authorised as a portfolio management company by the AMF under number GP 20000038.
Investing in unlisted companies and alternative investment funds involves risks, including a risk of capital loss, a liquidity risk and a long investment horizon.
FAQ on alternative investment funds
What is the difference between an AIF and a UCITS?
A UCITS invests in listed, liquid assets (equities, bonds) and is open to the general public. An AIF covers all other funds (private equity, private debt, real estate, infrastructure), invested in less liquid and more specialised assets.
Is an FCPR or an FPCI an AIF?
Yes. FCPR, FCPI, FIP and FPCI are categories of French alternative investment funds dedicated to private equity. They all fall under the AIFM framework supervised by the AMF.
Who can invest in an AIF?
It depends on the vehicle: some AIFs (FCPR, SCPI) are open to retail investors, others (FPCI, FPS) are reserved for professional or sophisticated investors, most often from €100,000. An adviser checks that the fund matches the investor's profile.
Is an AIF riskier than a traditional fund?
It is generally less liquid and carries a risk of capital loss, with higher fees. In return, it targets greater diversification and higher long-term returns, with no guarantee. The quality of the management company is decisive.
What does an "authorised" or "declared" AIF mean?
Depending on its target investors and level of regulatory constraint, an AIF either requires prior authorisation from the AMF or a simple declaration. In both cases, its management company is authorised and subject to the obligations of the AIFM Directive.
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