Alternative Investment Vehicle (AIV)
An alternative investment vehicle (AIV) is a subsidiary set up by a private equity fund to hold specific assets separately from the main fund. AIVs are used to facilitate tax-efficient structures or isolate high-risk assets. They are instrumental in providing flexibility to fund managers, allowing them to tailor investment strategies without impacting the primary fund structure.
Key Takeaways
- Subsidiary created to hold specific assets.
- Offers tax efficiency and risk isolation.
- Provides flexibility to fund managers.
- Tailors investment strategies for specific assets.
