The recent consultation paper by SEBI proposing changes to the co-investment framework for Category I & II intends to allow creation of a Co-Investment Vehicle (CIV), which would allow AIFs to offer co-investment opportunities to accredited investors in unlisted securities via a separate scheme under the AIF structure.
Key Takeaways:
- A separate CIV scheme will need to be launched for each co-investment in an investee company, with prior intimation to SEBI, in accordance with the shelf PPM for CIV schemes filed with SEBI at the time of registration. Each CIV will require separate bank accounts, demat accounts, and a PAN.
- CIVs will have the flexibility to invest up to 100% of their corpus in a single portfolio. Co-investment opportunities can only be provided to investors of the AIF who are Accredited Investors.
- Exit timing to be co-terminus for the AIF and CIV.
While the proposed changes could lead to more agile and competitive AIFs, it’s crucial that the regulatory framework remains streamlined and doesn’t introduce unnecessary complexity into the co-investment process. In light of this, SEBI has invited industry feedback on the consultation paper.
Reach out at priya.k@treelife.in for a discussion.
We Are Problem Solvers. And Take Accountability.
Related Posts
Ind AS 115 Revenue Recognition for SaaS and Subscription Businesses
Revenue recognition is where SaaS accounting gets genuinely hard. A customer pays ₹12 lakh upfront for an annual subscription in...
Learn More
BharatPe-Ashneer Grover SHA saga: what actually happened and the lessons for founders
BharatPe's shareholders agreement contained the same clauses that sit in almost every Indian venture-backed SHA: restricted shares, a for-cause clawback,...
Learn More
SaaS Metrics Investors Track: The Complete Guide & Latest Benchmarks
Every SaaS investor enters a diligence process with the same underlying question: is this business genuinely compounding, or does it...
Learn More© 2026 Treelife Ventures Services Private Limited. All Rights Reserved.
