Page 3 - Alternative Investment Funds

Northern Arc aims to raise Rs 1,000 cr through alternate investment fund

Non-bank lender Northern Arc on Monday said one of its arms is aiming to raise Rs 1,000 crore in an alternate investment fund (AIF). The category II AIF aims to raise Rs 1,000 crore, and has the scope to raise an additional Rs 500 crore through the green shoe option. The "Finserv Fund" being launched by the recently listed NBFC's subsidiary Northern Arc Investment Managers (NAIM) will use the money for lending to six varied sectors which will help improve financial inclusion and economic growth, as per an official statement. The six sectors include small businesses, affordable housing, vehicle finance, agriculture finance, microfinance and consumer finance, it said. The AIF is targeting to invest in 45-55 entities across its four-year cycle and deliver an internal rate of return of 14-14.50 per cent to the investors, NAIM chief executive Bhavdeep Bhatt said. The investment strategy focuses on higher risk-adjusted returns and regular investor cash flows by investing in a diversifie

Mt K Kapital raises over Rs 500 cr to invest in realty projects in Mumbai

Alternative investment fund Mt K Kapital on Wednesday said it has raised over Rs 500 crore to deploy in real estate projects in the Mumbai Metropolitan Region (MMR). In a statement, Mt K Kapital said it has raised Rs 500 crore for its maiden fund (Mt. K Resi Development Fund Category II SEBI registered Alternative Investment Fund) from investors like SBI, ICICI Bank, Famy Care and other HNIs. Over Rs 300 crore has already been committed towards five projects in the Mumbai region by Keystone Realtors (Rustomjee Group). The fund is now exercising its green shoe option and is targeting to do a final close shortly. Favourable macroeconomic conditions are likely to strengthen the real estate market and potentially drive expected IRRs (internal rate of returns) beyond 25 per cent, the company said. Mt K Kapital's core strategy targets quick turnaround residential projects with low equity investments and gives investors a share of project profits from redevelopment assets across Mumbai.

AIFs push for a tune-up: Simpler rules, lower barriers, faster approvals

Sebi expert group recommends reforms to streamline operations

Sebi tweaks valuation framework for AIFs post suggestions from industry

The regulator also included valuation guidelines endorsed by the AIF association for the valuation of assets on which there was ambiguity under the previous norms

Alternative investment funds: Rocket fuel for a $50 bn investment blastoff

The master key unlocks a $140 bn commitment

MFs, AIFs to gain higher weight in family office portfolios: Report

Exposure to fixed income, real estate likely could decline, says Sundaram Alternates report

Sebi's new asset class proposal: How far can it quench risk-taker's thirst?

Currently, there is no structured product available to those who have a negative outlook. This drives them to derivatives, where only one out of 10 investors makes profits

Sebi's new rules specify max limit for large value funds' tenure extension

Markets regulator Sebi has amended alternative investment funds (AIF) norms specifying maximum permissible limit for extension of tenure by 'Large Value Funds'. In a notification, Sebi said a large value fund for accredited investors may be permitted to extend its tenure up to five years. This is subject to the approval of two-thirds of the unit holders by value of their investment in the large value fund for accredited investors. The extension in tenure of any existing scheme of a large value fund for accredited investors will be subject to such conditions as specified by the regulator. The move is aimed at providing clarity to investors in Large Value Funds for Accredited Investors (LVFs) about their investment horizon. Large Value Fund (LVF) for accredited investors means an AIF or scheme of an AIF in which each investor (other than the manager, sponsor, employees or directors of the AIF or employees or directors of the manager) is an accredited investor and invests at least Rs

High returns, govt support pushes AIFs to explore SME-focused IPOs

The high returns from Initial Public Offerings (IPOs) of Small and Medium Enterprises (SMEs) in recent years, coupled with government support for the sector, have encouraged Alternative Investment Funds (AIFs) to explore this growth potential. AIF is a fund established or incorporated in India which is a privately pooled investment vehicle. Paradise Moon Investment Fund, an AIF, has announced its launch with the aim of raising Rs 750 crore over the next few years, targeting investors looking to leverage the growth of the SME market pre and post-IPOs. The fund aims to provide investors with a unique opportunity to tap into the growing potential of the Indian stock market and capitalize on the dynamic landscape of SME IPOs, an official said. Approximately 900 SMEs have been listed on the SME platforms of both the National Stock Exchange and the BSE, with significant traction observed over the past 2-3 years. We seek to invite investment in Category 1 Alternative Investment Fund (AIF

Capitalmind to launch Rs 500 cr in maiden AIF, to invest in 20-40 stock

Investment manager Capitalmind Financial Services on Thursday said it aims to raise Rs 500 crore in its maiden alternate investment fund over the next year. The company has been in the portfolio management services space and currently, boasts Rs 2,200 crore assets under management, its founder and chief executive officer Deepak Shenoy said. The firm received the Sebi approval for a category 3 AIF which it christened as "Capitalmind Select India One" last year, he told reporters, adding that the minimum investment amount will be Rs 1 crore. The fund is designed for sophisticated investors seeking exposure to a diversified, quantitatively managed equity portfolio with active risk management, he said, adding that it will invest in 20-40 stocks. It combines multiple factors such as momentum, low volatility and quality into a single pooled vehicle, offering investors an opportunity for long-term wealth appreciation, a statement said.

PE investments in realty sector up 15% to $3 billion in H1: Knight Frank

Mumbai led the investment landscape with $1.701 billion, followed by Bengaluru and Hyderabad

Sebi considers new product category between mutual funds and PMS

Sebi move aimed at filling product gap, curbing inflow into unauthorised investment schemes

AIFs pin hopes on passthrough status for Category-III funds: IVCA

Industry body requests removal of 25 per cent limit for IFSC-based retail funds' investment in unlisted assets

ABN Amro to buy German bank in biggest deal since 2008 financial crisis

The Dutch bank's deal comes as European lenders seek to diversify their revenues by bulking up in areas such as wealth management and private banking

Sebi allows AIFs to pledge shares in companies that invest in infra sector

To facilitate ease of doing business, markets regulator Sebi on Friday allowed AIFs (alternative investment funds) to pledge their shares in investee companies in the infrastructure sector. The regulator has also provided additional flexibility to AIFs and their investors to deal with unliquidated investments of their schemes. "Category I and Category II AIFs may create an encumbrance on equity of investee company, which is in the business of development, operation or management of projects in any of the infrastructure sub-sectors," Sebi said in a circular. The move will provide ease of doing business and flexibility to such AIFs. Experts believe that allowing AIFs to create an encumbrance on their equity investments in infrastructure sector companies for the purpose of project finance is essential for infrastructure development. Earlier, pledging of securities held by an AIF in investee companies for loans availed of by the investee companies violates provisions of the AIF ...

Strong global cues lift domestic markets; Nifty, Sensex rise 0.9% each

The expiry of derivatives contracts also added to the volatility

In a relief to banks and NBFCs, Reserve Bank of India modifies AIF norms

RBI said that its regulated entities (REs) will now be required to make provisioning only to the extent of the amount invested by the AIF scheme in the debtor company and not the entire investment

ASK Hedge Solutions aims to raise Rs 3,000 cr in maiden long-short NFO

The NFO (New Fund Offering) is an open-ended Category III Alternative Investment Fund, aiming to raise Rs 3000 crore with approx. Rs 1,000 crore over the next 6 months.

ASK Hedge Solutions aims to raise Rs 3,000 crore from AIF in 18 months

ASK Hedge Solutions on Monday said it is targeting to raise Rs 3,000 crore corpus from wealthy individuals and family offices in the next 18 months for its alternative investment fund. The ASKAbsolute Return Fund is an open-ended category-III alternative investment fund (AIF), which will be seeking to raise the money from high networth individuals, ultra HNIs, family offices and corporate treasuries, the company's chief executive officer Vaibhav Sanghavi told reporters here. Over the past decade or so, the nascent long-short platform has delivered returns of 10-15 per cent from a compounded annual growth rate perspective, Sanghavi said. He said the current fund will be targeted purely at domestic investors, but the next one of a similar strategy will open it for foreign investors as well. The newly launched fund has already received commitments of Rs 50 crore, and the company is targeting to take it to Rs 1,000 crore in six months. When asked about market regulator Sebi's concerns

Saudi Arabia transfers another 8% of Aramco shares to sovereign wealth fund

Saudi Arabia's crown prince transferred another 8% of shares in the kingdom's oil giant Saudi Aramco to the country's prominent sovereign wealth fund on Thursday. The shares are worth some $160 billion. Crown Prince Mohammed bin Salman's decision comes as the kingdom is trying to build a series of megaprojects and invest in sports and other fields aggressively abroad to wean the country off of relying solely on oil. The country's sovereign wealth fund known as the Public Investment Fund, or PIF, has been a key element of Mohammed's plans, known as Saudi Vision 2030. The transfer of part of the state's shares in Saudi Aramco is a continuation of Saudi Arabia's long-term initiatives to boost and diversify the national economy and expand investment opportunities in line with Saudi Vision 2030, a statement announcing the deal said. The transfer will also solidify PIF's strong financial position and credit rating. The statement said the kingdom's ownership in Aramco would now be 82.186%