An Alternative Investment Fund (AIF) in the Czech Republic is a company organised for the purpose of attracting and collectively investing funds from private investors. The fund offers investors the opportunity to invest money in various assets, including investment instruments in the form of shares, bonds, etc., derivatives, commodities (oil, gold, etc.), real estate, crypto-assets, collectibles, etc. The investment of capital is carried out in accordance with the regulations of the Czech Republic. Capital is invested in accordance with a pre-selected strategy and investors’ interests.
An Alternative investment fund is an opportunity to diversify the investment portfolio and get additional profit.
Requirements for Alternative Investment Funds (ZISIF §15) in the Czech Republic
- The director/owner of the fund may be one individual (foreign citizen).
- The investment of funds is carried out on a collective basis.
- The fund has the right to manage the assets of a maximum of 20 non-qualified investors and an unlimited number of qualified investors.
- The value of the managed assets must not exceed EUR 500 000 000 (if the managed assets include leverage (e.g. derivatives, currency hedging, etc.), the limit is reduced to EUR 100 000 000).
- The Fund has an obligation to submit periodic reports to the Central Bank of the Czech Republic on the amount of assets under management.
- The Fund must have a developed investment strategy.
- The fund must have a developed internal AML/CFT policy that is in line with its business model.
