ASI stands for Alternative Investment Company. It is classified as a type of alternative investment fund. Formally speaking, an ASI may operate as a limited partnership, capital company, or joint-stock limited partnership. It is not a financial institution, but rather an alternative investment fund.
How Does an ASI Operate?
From a legal standpoint, an Alternative Investment Company is considered an alternative investment fund. It is important to note that it differs from the types of funds defined in Article 3(4)(2) of the Act on Investment Funds and the Management of Alternative Investment Funds. Specifically, an ASI is distinct from specialized open-ended or closed-ended investment funds established under that Act.
According to the Act, an alternative investment fund (AFI) is a collective investment institution whose purpose is to acquire assets from various investors and invest them in their interest, in accordance with a defined investment policy. This activity is carried out within a designated sub-fund.
ASI vs Other Company Types
Legally, managing an ASI is not fundamentally different from operating other types of companies — whether capital or partnership-based. However, it is important to emphasize that the sole purpose of an ASI must be investment activity. Therefore, it is not an alternative to a standard limited partnership.
Another key point is that an ASI cannot engage in business operations in the traditional sense. Nonetheless, it may hold shares in other companies that do conduct business.
Source: KNF | Alternative Investment Company Managers (ZASI) – Questions and Answers
