n NISM Certifications
X NISM Series X
Medium

Which statement best describes a strategic sale (M&A Exit) for an AIF?

Practice question from NISM Series XIX A- Alternative Investments Funds (AIF) Distributors Mock Test 5 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. AIF selling stake to a multinational company

    Correct answer

  2. B

    A stock broker buying the AIF from its sponsor

  3. C

    AIF converting debentures into shares

  4. D

    AIF floating a subsidiary with the investee company

Why this is the answer

A strategic sale involves a corporate buyer, often a larger or industry-related company acquiring stake or entire control.

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