Fund Due Diligence & KIM Review

Fund due diligence and KIM review is the investor's examination of an alternative investment fund before committing capital — the review of the fund's Private Placement Memorandum (PPM) and Key Information Memorandum (KIM) under the SEBI (Alternative Investment Funds) Regulations 2012. The diligence tests the fund's strategy, the manager's track record and credentials, the fee structure, the terms of the fund — the tenure, the lock-in, the side letters — and the disclosures SEBI requires the PPM to carry. The KIM is the short-form document the investor actually reads; the PPM is the full disclosure.

The decision to invest in an AIF is a decision to trust the manager with money on the fund's terms, and the PPM is the contract of that trust. The diligence reads the PPM against the Regulations — are the disclosures complete, does the strategy match the categorisation, are the fees and the expenses as represented, what happens on a change of manager, what are the redemption and exit rights. Each term is a financial consequence the investor should understand before the commitment, not after.

The cost of skipping the diligence is the asymmetric information of private markets: a fund whose strategy drifted from its PPM, a fee structure that erodes the returns, a redemption term the investor discovers at the exit. The KIM review and the PPM diligence are the investor's own check — cheap against the commitment they protect.

This service is for investors — HNIs, family offices and institutions — evaluating AIF investments. We review the PPM and KIM against the AIF Regulations 2012 and the fund's own documents, analyse the fee and term structure, test the manager's track record, and issue a diligence note with the risks and the terms to negotiate.