Closed-end AIFs extend fundraising cycles as pandemic hits sentiment

Some players approach Sebi to seek-industry wide relief

Several closed-ended alternative investment funds (AIFs), which had launched in the past two years and were in the process of completing the fundraising process after March, have sought to extend their fundraising in the aftermath of the Covid-19 pandemic, said people in the know.

Most private equity-focused AIFs are structured as closed-ended funds, with a defined tenure for fundraising and fund deployment, as well as exit. Fundraising usually extends for one to two years from the launch of the fund. Fund deployment could take four to five years and the exit another four to five years.

“All these three cycles have been