How AIF Units Are Sold Before Fund Maturity

Selling an AIF unit before fund maturity requires the manager's consent under most fund documents, a willing buyer at an agreed price, and completion of the specific transfer documentation and eligibility checks the fund's constitutional documents require.

The mechanical process typically runs: the seller notifies the manager of intent to transfer; the manager confirms the buyer meets the fund's eligibility criteria (often the same minimum investment and accreditation requirements as a new investor); price is negotiated between buyer and seller; and the manager and administrator process the actual unit transfer and update records.

The common failure is underestimating how long this process takes and how much manager cooperation it requires. A manager under no obligation to actively find a buyer, and the seller usually has to source one themselves — through a secondary marketplace, a broker, or their own network — before the transfer mechanics even begin.

Before initiating a sale, confirm: the exact transfer-consent process and timeline in the fund's PPM; whether the fund manager provides any assistance sourcing a buyer or the seller must find one independently; and the specific eligibility criteria a buyer must meet, which can meaningfully narrow the pool of potential buyers.

Selling an AIF unit before maturity is possible but rarely fast — plan for a multi-month process requiring both a self-sourced buyer and manager cooperation.