AIF Side Letters: What They Are and Why Some Investors Get Them

In some AIFs, certain investors may receive side letters. A side letter is an additional agreement that can clarify specific rights, reporting, or operational terms for that investor. It should never replace the core fund documents, but it can add transparency on specific points.

Side letters are usually seen with large-ticket investors, institutions, or strategic partners. They may address reporting frequency, information rights, most-favoured-nation clauses, or operational matters. The key is fairness and disclosure, because governance is the backbone of trust in alternates.

If you are evaluating an AIF, ask a simple question: do side letters exist, and what is the policy around them? You do not need special treatment. You need clarity that treatment is consistent and disclosed.

Truvest Insight: Governance questions are not 'difficult'. They are protective.

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