IIFL Private Equity Fund, which wants to focus on backing professional entrepreneurs, has raised around Rs 400 crore in the first close achieved this month and has now started marketing itself to global investors.
IIFL Private Equity Fund is registered with Securities and Exchange Board of India (Sebi) as a category-II AIF (alternative investment fund). IIFL Asset Management Ltd on July 19 has made a submission to the US Securities and Exchange Commission (SEC) in a bid to market the product to a wider base.
"The fund achieved its first close in the month of July, in line with our planned schedule. We have already raised around Rs 400 crore in the first close. Post the first close, we continue to see strong investor interest during the fundraising period and continue to accept fresh commitments," IIFL Asset Management told DNA Money.
First close means that when a certain threshold of money has been raised, the PE fund can begin making investments while new investors can still join in by committing capital.
The asset manager said that the fund is now being marketed to global investors from July onwards. "The fund shall be raising assets over the next four to six months from international investors," it said.
The fund will focus on professional entrepreneurs who are looking to build businesses. The sectors that would be looked at include consumer, financial services, technology and healthcare.
IIFL Asset Management is said to have pioneered the AIF in India. Each of its alternative funds including Seed Venture Fund, IIFL Special Opportunities Fund and IIFL Real Estate Fund reached beyond the mainstream investment universe and tapped into unique opportunities. While AIFs can also invest in listed equities, the AIF structure allows for investments in securities which are unavailable under the traditional mutual fund platform.
Alternative investment funds are offered as a private placement. The minimum investment by each investor in an AIF is typically Rs 1 crore. As per Sebi data, there are 400 AIFs registered so far in the last fiscal. Till March 31, 2018, AIFs had Rs 1.65 lakh crore in commitments, Rs 85,000 crore in actual funds raised and Rs 61,400 crore has been already invested.
THE OPPORTUNITY
- The fund will focus on professional entrepreneurs who are looking to build businesses
- Sectors that would be looked at include consumer, financial services, technology and healthcare
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