The QIAIF meets the requirements of AIFMD and acts as the vehicle of choice for private investors who choose to invest in real estate or alternative asset classes. QIAIFs are only available to select investors who have extensive knowledge of the financial industry or possess specific certifications.
The QIAIF is an attractive option for hedge funds and funds of hedge funds that may not fit into a UCITS structure. The requirements for liquidity, diversification, restrictions on borrowing and leverage, applicable to a UCITS fund do not apply to a QIAIF. A QIAIF is attractive because it allows the investment manager a high degree of flexibility within the management strategy.
Regulated by the Central Bank of Ireland, the QIAIF must designate an AIFM, which will be regulated under the AIFMD. QIAIFs are subject to fast-track authorization which allows the fund to be authorized by the Central Bank of Ireland within 24 hours.
There is no requirement to publicise the issue and redemption prices of their units; however, these must be made available to unit holders on request. There are no diversification requirements.