Former JPMorgan India chief to launch new fund

First tranche of Rs 100 crore expected to be completed by June

Krishnamurthy Vijayan, former chief executive officer and executive chairman of JPMorgan Asset Management in India, is set to launch a new impact investment fund with an initial size of Rs 100 crore in June this year.

Confirming this, Vijayan, currently managing director of Charioteer I4L, said Charioteer Fund I is registered as a Category-I Social Alternate Investment Fund under the Sebi (Alternate Investment Funds) Regulation, 2012.

While the first close would be Rs 100 crore by June this year, the company has got approval for Rs 250 crore. The second set of fund-raising would start by the second half of the year after the deployment of the first tranche.

The fund is raising capital from a combination of institutional and high net worth investors in India.

"It is not easy at the current environment, since limited partners (LPs) are cynical. What I am betting on is our concept, experience in mutual fund industry, where I brought cutting edge products and the team," said Vijayan, who has also worked with brands such as UTI, Jardine Fleming AMC, and IDBI.

He roped in Sudhindra Ballal as head of equity. Earlier, Ballal was with Daiwa Asset Management in Singapore, managing its Asian assets.

Azmat Taufique, who has spent nearly 20 years with the World Bank Group's International Finance Corporation, will also help Vijayan to manage the fund.

The fund will invest in companies that create livelihood, including manufacturing companies run by first-generation entrepreneurs and social enterprises, including profitable micro-finance companies.

While the size of the deal could be anywhere between Rs 5 and Rs 25 crore, the sweet spot will be Rs 10-15 crore for 26 per cent to 49 per cent stake, said Vijayan.

The fund will stay invested for five years, with two years' extension, and looking at 25 per cent internal rate of return. To ensure there is an acceptable exit route, Charioteer proposed it would encourage investees to create a fund in which they would transfer a part of their income to create a corpus, which can buy back the investments with a moderate return.