Alternative Investment Funds (AIFs) in Bulgaria are a relatively new phenomenon. The Bulgarian legal framework for AIFs was established in 2016, with the adoption of the Bulgarian Law on the Activities of Collective Investment Schemes and Other Collective Investment Undertakings.
AIFs are collective investment undertakings that invest in assets other than traditional investments such as stocks and bonds. These assets may include real estate, private equity, venture capital, and hedge funds, among others. AIFs are managed by Alternative Investment Fund Managers (AIFMs), which are authorized and regulated by the Bulgarian Financial Supervision Commission (FSC).
The Law on the Activities of Collective Investment Schemes and Other Collective Investment Undertakings provides a regulatory framework for the establishment, management, and marketing of AIFs in Bulgaria. The law establishes various types of AIFs, including private equity funds, real estate funds, and hedge funds, among others. The law also sets out requirements for the authorization and operation of AIFMs, as well as rules for the marketing and distribution of AIFs in Bulgaria and other EU member states.
AIFs in Bulgaria offer investors an alternative to traditional investments and can provide access to a wider range of investment opportunities. AIFs can also offer investors the potential for higher returns but typically involve higher levels of risk.