ABOUT US
OVI Advisory Services Private Limited is a specialized trusteeship firm dedicated to serving Alternative Investment Funds (AIFs) across India. We understand that the success of any investment fund rests not just on investment acumen, but on a foundation of strong governance, regulatory compliance, and unwavering commitment to investor protection.
Categories Of Alternative Investment Funds
SEBI has classified AIFs into three categories based on their investment strategy, risk profile, and economic impact. Understanding these categories is essential for sponsors, managers, and investors.
Category I AIF: Building India's Future
Category I AIFs are those that invest in start-ups, early-stage ventures, social ventures, SMEs, infrastructure, or other sectors or areas which the government or regulators consider as socially or economically desirable. These funds receive certain regulatory incentives due to their positive spillover effects on the economy.
Types of Category I AIFs:
Venture Capital Funds
Invest in start-ups and early-stage companies with high growth potential. These funds play a crucial role in fostering innovation and entrepreneurship, providing not just capital but also strategic guidance and network access to budding entrepreneurs.
SME Funds
Focus on small and medium enterprises that form the backbone of the Indian economy. These funds help SMEs scale up, adopt new technologies, and access growth capital that might otherwise be unavailable.
Social Venture Funds
Target investments that generate both financial returns and measurable social or environmental impact. These could include investments in education, healthcare, renewable energy, or financial inclusion initiatives.
Infrastructure Funds
Invest in critical infrastructure projects such as roads, ports, power generation, telecommunications, and urban development. These funds play a vital role in building India’s infrastructure backbone.
Angel Funds
Regulatory Benefits
Category I AIFs enjoy certain pass-through benefits for tax purposes and face less stringent investment restrictions compared to other categories.
Category II AIF: Sophisticated Investment Strategies
Category II AIFs include funds that do not fall under Category I or III and which do not undertake leverage or borrowing other than to meet day-to-day operational requirements. These are the most common type of AIFs in India and include a diverse range of investment strategies.
Types of Category II AIFs:
Private Equity Funds
Debt Funds
Invest primarily in debt securities of companies, providing an alternative to traditional bank lending. These funds cater to various credit profiles and risk appetites, from senior secured debt to subordinated/mezzanine debt. They play an increasingly important role in India’s corporate credit market.
Fund of Funds (FoF)
These funds invest in other AIFs or investment funds, providing investors with diversified exposure across multiple fund managers and strategies. FoFs are particularly attractive for investors who want professional selection and monitoring of underlying funds.
Real Estate Funds
While technically a Category II fund, real estate AIFs invest in real estate assets including commercial properties, residential projects, REITs, and real estate development. They provide investors with exposure to India’s growing real estate sector.
Investment Approach
Category II funds typically target sophisticated investors and employ professional investment strategies with thorough due diligence, active portfolio management, and value creation initiatives.
Regulatory Requirements
These funds must maintain certain diversification norms, are subject to concentration limits, and must follow prescribed valuation methods.
Category III AIF: Complex Trading Strategies
Category III AIFs employ diverse or complex trading strategies and may employ leverage including through investment in listed or unlisted derivatives. These are the most sophisticated AIFs and are subject to the most stringent regulatory oversight.
Types of Category III AIFs:
Hedge Funds
Employ a wide range of strategies including long-short equity, market neutral, event-driven, macro strategies, and multi-strategy approaches. These funds seek to generate absolute returns regardless of market direction and often use sophisticated risk management techniques.
Long-Short Funds
Take both long positions (betting on price increases) and short positions (betting on price decreases), aiming to profit from both rising and falling securities while managing overall market exposure.
Derivatives-Based Funds
Primarily use derivatives instruments such as futures, options, and swaps to generate returns or hedge risks. These funds require deep understanding of derivative markets and sophisticated risk management.
Arbitrage Funds
Exploit price differences between related securities or markets to generate low-risk returns. Common strategies include cash-futures arbitrage, merger arbitrage, and statistical arbitrage.
Quantitative Funds
Use mathematical models, algorithms, and systematic trading strategies to identify investment opportunities and manage portfolios.
Risk Characteristics
Category III AIFs typically have higher risk profiles due to leverage usage and complex strategies. They require investors with higher risk tolerance and sophisticated understanding of financial markets.
Leverage Restrictions
While these funds can employ leverage, SEBI regulations impose certain limits and require robust risk management frameworks.
Our Board Of Directors
Our leadership team combines decades of experience in banking, finance, law, and regulatory compliance. This diverse expertise enables us to provide comprehensive trusteeship services that address all aspects of fund governance and investor protection.
Why Choose Ovi Advisory Services
Selecting the right trustee is one of the most critical decisions in setting up an Alternative Investment Fund. The trustee is not just a regulatory requirement—it’s the cornerstone of good governance and investor protection.
Here’s why OVI Advisory Services stands out:
Deep Regulatory Expertise and Experience
Our team brings unparalleled experience to AIF trusteeship. With decades of hands-on experience in banking operations, credit management, recovery, compliance, and corporate law, we understand the practical realities of fund management and the intricacies of financial markets.
We possess comprehensive knowledge of SEBI AIF Regulations 2012 and stay abreast of all regulatory developments, circulars, and guidance notes. We understand not just the letter of the law but its spirit and intent, enabling us to provide guidance that goes beyond mere compliance to embrace best practices.
Proven Leadership with Extensive Track Record
Our directors bring decades of combined experience spanning public sector banking, private sector banking, cooperative banking, legal practice, and regulatory engagement, offering leadership that truly understands the complexities of financial services. Our team has:
- Managed large-scale banking operations with teams of 700+ professionals
- Handled credit portfolios worth hundreds of crores
- Participated in SEBI committees on trustee regulations
- Successfully transformed traditional financial institutions into modern, compliant entities
- Navigated complex regulatory environments across multiple decades
This depth of experience translates into practical, informed oversight that adds real value to your fund.
Industry Connections
Our participation in SEBI committees, industry associations, and regulatory forums keeps us connected with regulators, peers, and industry developments. This ensures we can anticipate regulatory changes and help our funds stay ahead of compliance requirements.
Comprehensive Service Approach
Unlike trustees who take a checkbox approach to compliance, we view our role holistically. We’re not just monitors—we’re partners in your fund’s success, providing proactive guidance, thoughtful oversight, and constructive challenge when needed.
Process Excellence and Documentation
Our systematic, process-driven approach ensures consistency, reduces operational risks, and creates clear audit trails. We maintain meticulous documentation of all trustee activities, decisions, and oversight actions.
Responsive and Accessible
We believe in being accessible to our fund managers and responsive to their queries and concerns. While we maintain our independence as trustees, we work collaboratively to address issues and find solutions.
Technology-Enabled Operations
We leverage technology to enhance our oversight capabilities, streamline reporting, and improve efficiency. Our systems enable real-time monitoring and quick access to fund information.
Integrity and Independence
Above all, we bring uncompromising integrity to our role as trustees. We understand that our primary duty is to investors, and we discharge this responsibility with complete independence and objectivity.
Customized Solutions
We recognize that every fund is unique-in its strategy, structure, and requirements. We tailor our services to meet the specific needs of each fund while maintaining consistent standards of governance.
Long-Term Partnership Orientation
We view our relationship with funds as long-term partnerships. We invest time in understanding the fund’s strategy, the sponsor’s vision, and the unique aspects of each fund to provide informed and contextual oversight.
Our Commitment
To Excellence
At OVI Advisory Services, we are committed to
Investor Protection
Regulatory Compliance
Maintaining the highest standards of compliance with all applicable regulations
Ethical Conduct
Operating with integrity, transparency, and professionalism in all our dealings
Continuous Improvement
Constantly enhancing our processes, knowledge, and capabilities
Industry Developmen
Contributing to the development of the AIF industry through thought leadership and active participation in industry forums
Frequently Asked Questions
What is the role of a trustee in an AIF?
How is OVI Advisory Services different from other trustees?
What is the typical fee structure for trusteeship services?
How long does it take to set up a trust structure and register an AIF?
Can a fund change its trustee?
What ongoing reports will the trustee provide?
How does the trustee handle conflicts between the investment manager and investors?
Get Started With Ovi Advisory Services
We welcome the opportunity to discuss how our trusteeship services can provide the governance foundation for your Alternative Investment Fund.
Whether you're a sponsor planning to launch your first fund, an experienced investment manager expanding into new strategies, or a fund looking to change trustees, we're here to help.
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operations@oviadvisory.com
aif@oviadvisory.com