New Delhi, April 16 -- The industry body for venture capital, Indian Venture and Alternate Capital Association (IVCA), will focus on drawing more domestic institutional capital into alternative investment funds (AIFs), even as structural bottlenecks continue to slow participation.

"Pension funds and insurance companies allocate very little to AIFs despite regulatory permission," said Srini Srinivasan, the newly appointed chairperson of IVCA and managing director, Kotak Alternate Asset Managers Limited, in an interview with Mint.

While policies allow these institutions to invest in AIFs, execution remains a challenge, he said.

One key hurdle is structural misalignment.

For instance, the National Pension System (NPS) requires a daily ne...