The JV, Pantomath Pi Square Asset Management LLP, will raise capital through its maiden Category II alternative investment fund
Financial services firm Pantamoth Group and investment advisory firm Pi Square Investments have formed a 50:50 joint venture, which will jointly raise Rs 400-crore fund to invest primarily in companies in manufacturing sector.
The JV, Pantomath Pi Square Asset Management LLP, will raise capital through its maiden Category II alternative investment fund. These funds usually do not undertake leverage or borrowing, and raise capital to meet day-to-day operational requirements as permitted in the AIF Regulations.
The India Inflection Opportunity Fund will invest in companies which are not start-ups and have a profitability record of 3-4 years. The plan is to raise Rs 300 crore with a green-shoe option of Rs 100 crore depending on the response.
Around 70% of the fund will be invested as equity in listed and unlisted companies, while remaining will be debt, according to Pantomath group founder Mahavir Lunawat.
According to him, companies with rural consumption theme and from sectors such as chemicals, consumer goods, pharma and healthcare will be looked at for investment purpose.
Both Pantamoth and Pi Square will invest 5% of the fund size, or Rs 5 crore each, whichever is highest, as seed capital, according to Vishrut Pathak, senior partner at Pi Square and chief investment officer of the JV. It is looking to raise the remaining corpus in about 25 opportunities of an average ticket size of Rs 10-15 crore per opportunity. The holding period of the fund will be 4-5 years. The JV will reach out to high-net worth individuals and institutional investors to raise the corpus.
Pathak said the fund will avoid investing in conflicting business models with complex corporate structures.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
 "Funds")
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}