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by Undo Capital
December 11, 2025
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What Is an Alternative Investment Fund (AIF)?

An Alternative Investment Fund (AIF) is a collective investment structure that pools capital to invest in assets outside traditional stocks and bonds, such as private equity, venture capital or real estate.

Alternative Investment Fund (AIF) Meaning

The alternative investment fund meaning refers to a regulated investment vehicle used mainly by professional and institutional investors to access non-traditional asset classes. To define an alternative investment fund in practice, it includes structures such as private equity funds, venture capital funds, hedge funds and property funds. A clear AIF definition is important because these funds operate under specific regulatory frameworks and investor protection rules. In startup finance, AIFs often play a central role in larger funding rounds and growth-stage investing.

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Disclosure Notice: This communication is issued by Undo Capital Limited (“Undo Capital”) and is provided strictly for informational purposes only. It contains general information and should not be relied upon as accounting, business, financial, investment, legal, tax, or other professional advice. Undo Capital is not regulated by the Financial Conduct Authority (FCA) and does not provide investment, financial, or tax advice. Our services are designed to assist startups and businesses with company formation, legal agreements, and funding-related documentation. Nothing in this communication constitutes, or should be construed as, a recommendation, offer, or solicitation to purchase or sell any security or financial instrument.
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Disclaimer: Our services are designed to assist startups and businesses with company formation, legal agreements, and funding-related documentation. We do not provide investment advice, financial advice, or tax advice, nor are we regulated by the Financial Conduct Authority (FCA). Participating in startups and early-stage enterprises carries inherent risks, including limited liquidity, absence of dividends, potential loss of investment, and dilution. Any decisions regarding investments should be made independently by the investor as part of a well-diversified portfolio.