Pro-rata and pari-passu rights of investors of AIFs

Pro-rata rights required for AIF investors, with limited exceptions, standards for differential rights, and reporting obligations.

Investors in an AIF scheme must hold pro-rata rights to investments and distributions relative to commitments, with exceptions where an investor is excused/excluded, defaults on contribution, or shares returns with the manager/sponsor under agreement. Managers or specified public/development entities may subscribe to subordinate unit classes within limits and safeguards. Existing schemes with priority distribution that lack exemptions shall not accept fresh commitments or make new investments, and any consequent regulatory limit breaches must be recorded in the Compliance Test Report.