Avendus Wealth Management, an arm of Avendus Capital, today announced the launch of its first Category III alternative investment fund to invest in listed companies with demand traction and a growing order book. Avendus Phoenix Fund, a closed ended fund with a minimum capital commitment of Rs 1 crore from investors, comes amid rise in order flows and increasing use of capacity across sectors like roads, transmission and distribution of power, construction and renewable energy, Avendus said in a release. "The fund will look to invest in listed companies where there is demand traction and a growing order book which will lead to assets sweating better and drive revenue and profitability growth," Avendus Wealth Management director (equities) Aniruddha Naha said. "Given a slowdown in the economy as it adjusts to the GST and demonetisation effect, this is an appropriate time to launch the fund, as the economy will not only come back to normal stream but continue to grow at higher single digits for the foreseeable future," he added. The amount accumulated under the fund would be invested in 15-20 companies. Alternative investment fund (AIF) is a privately pooled investment vehicle which collects funds from sophisticated investors, whether Indian or foreign, for investing it in accordance with a defined investment policy. AIFs under category III employ diverse or complex trading strategies and may employ leverage including through investment in listed or unlisted derivatives.
Various types of funds such as hedge funds, PIPE Funds are registered as Category III AIFs.
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