UNIT 1 – OVERVIEW OF ALTERNATIVE INVESTMENTS
A. Introduction to Alternative Investment
B. Alternative Investment Avenues
C. Alternative Investments – Antecedents and Growth
D. Distinguishing ‘Alpha’ and ‘Beta’
E. Role of Alternative Investments in Portfolio Management
UNIT 2 – ALTERNATIVE INVESTMENT FUNDS IN INDIA
A. Evolution and Growth of AIFs in India
B. Trends Post-2008
C. Types of AIFs
D. Comparison of AIF Categories
E. Suitability and Enablers for AIF Products in India
F. Current AIF Market Status
UNIT 3 – CONCEPTS IN THE AIF INDUSTRY
A. The Private Capital Ecosystem
B. Due Diligence
C. Sponsor Commitment
D. Capital Commitment
E. Capital Invested
F. Drawdown
G. Fees & Expenses
H. Preferred Returns and Additional Returns
I. Distributions / Waterfall
J. First close and Final close
K. Private Placement Memorandum (PPM)
L. Co-investments
M. Term Sheet, Summary of Principal Terms (SOPT)
N. Environment, Social and Governance (ESG)
UNIT 4 – AIF REGULATORY FRAMEWORK
A. SEBI (Alternative Investment Funds) Regulations 2012
B. General Provisions of the Foreign Exchange Management Act 1999 (FEMA)
UNIT 5 – ALTERNATIVE INVESTMENT FUND STRUCTURING
A. Introduction
B. Principle of ‘Pooling’
C. General ‘Pooling’ Considerations
D. Anatomy of AIF Constitution
E. Templates for AIF Structuring
UNIT 6 – RISK AND RETURN – FUND AND INVESTOR PERSPECTIVE
A. Basics of Risk and Return
B. Nature and Types of Debt Investments
C. Nature of Equity Investments
D. Nature of Investor Risks in AIF
E. Primary Metrics of Returns
F. Return Measurement Metrics in Alternative Investments
G. The J Curve
H. Worked out Case
UNIT 7 – INVESTMENT PROCESS AND GOVERNANCE OF FUNDS
A. Deal Sourcing
B. Due Diligence Review (DDR)
C. Definitive Agreements
D. Overview of Important Investor Protection Rights
E. Co-investments in AIFs
F. Regulation on Governance Structure in AIF
UNIT 8 – FUND DUE DILIGENCE – INVESTOR PERSPECTIVE
A. Investor Perspective
B. Fund Selection
C. Evaluating the Fund Manager
D. Importance of Fund Due Diligence
E. Fund Benchmarking
F. Broad Aspects of Fund Due Diligence
G. Sales Strategy Formulation by Distributor
UNIT 9 – LEGAL DOCUMENTATION AND NEGOTIATION – INVESTOR PERSPECTIVE
A. Introduction
B. The Trust Document / LLP Partnership Deed / Memorandum and Articles
C. The Investment Management Agreement
D. The Subscription (Investor Contribution) Agreement
E. Private Placement Memorandum
F. Support Services Agreements
UNIT 10 – FUND MONITORING, REPORTING AND EXIT
A. Monitoring Alternative Investment Fund Progress and Performance
B. Regulatory Framework for Fund Monitoring and Reporting
C. Context and Scope of Effective Fund Monitoring
D. Fund Reporting
E. Conflicts and Concerns in Fund Reporting
F. Possible Methods for Dealing with Adverse Situations
G. Secondary Exits (Secondaries)
H. Exits from Portfolio Companies
I. Winding Up of an AIF
UNIT 11 – VALUATION
A. Introduction
B. Valuation Basics for Fixed Income Instruments
C. Approaches to Equity Valuation
D. Approaches to Business Valuation
E. Asset based Valuation
F. Discounted Cash Flow (DCF) Valuation
G. Relative or Multiple based Valuation
H. Valuation of AIF Portfolio Investments (Investee Companies)
I. General Approach to Fund Valuation
J. Valuation Regulations
K. Role of Valuers and Limitations of Valuation
L. Distributor Responsibility to Investors
UNIT 12 – TAXATION – INDIA SPECIFIC
A. Basic Framework
B. AIF Taxation
C. Business Income and Investment Income
D. Taxation for residents in India
E. Taxation of Non-residents in India
F. General Anti-Avoidance Rules (GAAR)
G. Goods and Services Tax (GST)
H. Stamp Duty and Local Taxes
UNIT 13 – GOOD PRACTICES
A. Introduction
B. Role of AIF Distributor
C. Distributor Agreement
D. Preparation of Distribution Pitch
E. Scope of Distribution Services (Pre and Post)
F. Distributor Good Practices