An Alternative Investment Company (ASI) is a type of alternative investment fund — though distinct from the fund defined in Article 3(4)(2) of the Investment Funds Act, which governs investment funds and the management of alternative investment funds.
Alternative Investment Fund Under the Act
According to the Act, an alternative investment fund (AFI) is a collective investment institution. Its core activity involves acquiring assets from various investors and investing them in accordance with a defined investment policy, in the interest of those investors. This investment activity is governed by the fund’s investment policy. The same applies to ASIs, which — under the Act’s interpretation — are considered AFIs.
Scope of ASI Activity
The scope of an ASI’s operations is precisely defined in Article 8a(3) of the Act:
“The sole purpose of an Alternative Investment Company, subject to exceptions provided by law, is to collect assets from multiple investors in order to invest them in the interest of those investors in accordance with a defined investment policy.”
In practice, this means that the primary business of an ASI is to collect investor assets and allocate them through investment.
There are exceptions to this rule — specifically defined in the legislation. In practice, this means that an ASI may undertake additional activities that do not strictly fall under investment operations, provided they are also regulated by special provisions.
However, such activities must be related to the company’s core investment profile.
Source: KNF | Alternative Investment Company Managers (ZASI) – Questions and Answers
