PGIM India forays into Rs 8-trn AIF space with Category III fund launch

Fund to focus on multi-year growth trends, identifies discretionary consumption, manufacturing as top themes

PGIM India Asset Management Company (AMC) forayed into the Rs 8-trillion Alternative Investment Fund (AIF) space on Thursday with the launch of a long-only Category III AIF. The AMC aims to raise Rs 1,000 crore through the fund in the ongoing financial year.

The AIF will be managed by Aniruddha Naha, the newly-appointed chief investment officer (CIO) of the AIF and PMS businesses. He was earlier the head of equities at PGIM India mutual fund.

"For the AIF, the broad framework for stock selection is based largely on operating cash flows and leverage and hence very similar to what we have followed in mutual funds. However, in AIFs, we will be able to take a more concentrated approach and have the freedom to focus more on some and also skip a few segments/sectors altogether," Naha said.

Also Read: PGIM India AMC launches AIF, targets to collect Rs 1,000 cr in FY24

The fund will look to invest in select themes and stick to them for the long-term.

"The few strong bases are discretionary consumption, manufacturing supported by strong capex trends, financialisation, and digitisation which, according to us, are multi-year growth trends. Going by the trend seen in the West, discretionary consumption surges once the per capita GDP reaches a certain level, say around $2000-2500, which is where India is at present. Further, having capacity in place augurs well when demand kicks in, and at the same operating levels, returns on assets have a multiplier," the CIO – Alternates at PGIM India AMC stated.

The AMC is looking to raise Rs 5,000 crore in the next 3-4 years with a few more fund launches.

"With the addition of alternatives to the product strategy, we offer a diverse and sharply positioned product set which will effectively solve investment challenges for HNI, UHNI, and family office clients. We have a wide network of advisors and distributors who will help us with the reach," said Abhishek Tiwari – Executive Director & Chief Business Officer, PGIM India AMC.