Fund Structuring Master
Typical GIFT City fund structures — standalone scheme, umbrella structure, feeder-into-domestic-AIF, and LP-GP economics.
Standalone vs umbrella structure
A Registered FME may set up a single standalone scheme, or an umbrella fund vehicle housing multiple sub-schemes (each with its own investors and investment mandate) under one legal entity — an umbrella structure amortises setup/compliance cost across sub-schemes but requires careful ring-fencing of each sub-scheme's assets and liabilities.
Feeder structures into domestic AIFs
A common structure uses the IFSC scheme as a feeder vehicle pooling non-resident investor money, which then invests into a domestic Category I/II AIF as the master fund — combining the IFSC's tax and ease-of-onboarding advantages for foreign investors with the domestic AIF's direct access to Indian portfolio companies.
LP-GP economics and manager commitment
Standard private-fund economics (management fee, carried interest/performance fee, hurdle rate) apply, layered with the mandatory sponsor/manager skin-in-the-game commitment set by the Fund Management Regulations — side-letter and most-favoured-nation terms for anchor investors must still be disclosed to all investors per the regulations' conflict-of-interest provisions.