India's AIF Industry Grapples with Disclosure Dilemma Amid Investor Demands

• India's AIF industry faces a transparency challenge, with investors demanding more disclosures from Category I and II AIFs.
• A recent IVCA meeting with family offices and fund managers debated systematic fund-level disclosures, but ended without a clear resolution.
• While IVCA offered ad-hoc data requests, it stopped short of committing to a centralized disclosure framework, unlike Category III AIFs.
• Maturing investors, including HNIs, are pushing for greater transparency and standardized benchmarking to make informed investment decisions.
• "Precincts" were proposed as a compromise, but fund managers warn of unintended consequences like unfair scrutiny and competitive risks.

Why It Matters: India's AIF sector struggles to balance investor demand for transparency with fund managers' concerns over disclosure.