Any fund that is not a mutual fund (UCITS) is classified as an alternative investment fund (AIF). Under the Alternative Investment Fund Managers Act (2013:561) (AIFM Act), an AIF is defined as an undertaking for collective investment that: raises capital from multiple investors,
- in order to invest the capital in accordance with a given investment strategy,
- in which the investors have no direct influence over investment decisions, and
- is not a mutual fund (UCITS).
The definition is technology-neutral and covers a wide range of fund types, including real estate funds, private equity funds, hedge funds, infrastructure and credit funds, as well as special funds.
An AIF is defined by its function rather than its legal form. It may, for example, be structured as a limited liability company or a limited partnership. What determines whether an arrangement constitutes an AIF is whether it pools capital from multiple investors to be managed collectively in accordance with a pre-defined investment policy.
AIFs are not open to the public in the same way as mutual funds (UCITS). They are typically aimed at professional investors but can, under certain conditions, also be offered to non-professional investors. The LAIF provisions aim to ensure investor protection and financial stability, while allowing flexibility for alternative strategies and structures.
The Swedish Alternative Investment Fund Managers Act 2013:561 (Swedish).