AI-Only AIFs & LVFs: Flexibility Can Be Powerful — If Your Due Diligence Is Strong

Some AIF structures are designed specifically for accredited investors and may offer more flexibility compared to standard structures. That flexibility can be useful, but it also means the investor must take due diligence far more seriously.

The correct mindset is not “this is premium, so it must be better.” The correct mindset is: what exactly is the strategy, how is risk controlled, what is the liquidity structure, and how will reporting work? The best investors don’t rush. They test clarity before allocating capital.

A simple rule helps: if you cannot clearly explain the product’s “how it works” in plain words, don’t commit meaningful money to it. Complexity should exist in strategy—not in communication.

Truvest Insight:
In alternates, paperwork is not formality — it is protection.

Disclaimer:
Educational only. Not investment advice.