Exploring AIF Category III Funds
Alternative Investment Funds in India are gaining significant popularity among investors seeking diverse and superior-return opportunities. Alternative Investment Funds (AIFs) are privately pooled investment vehicles that collect funds from sophisticated investors.
In India, AIFs are classified into three categories by the Securities and Exchange Board of India (SEBI).
What Are AIF Category III Funds?
In this blog, we will delve into the intricacies of AIF Category III Funds: These funds are closed and open-ended, allowing investors to enter and exit the fund at certain intervals. This flexibility, coupled with the fund’s potential for high returns, makes it an attractive option for investors with a higher risk appetite. However, the complexity of these funds necessitates a robust investment strategy and a skilled management team to navigate the volatile market conditions effectively.
The future outlook for AIF Category III Funds in India is promising, driven by several macroeconomic factors and regulatory changes. According to the Securities and Exchange Board of India (SEBI) Category III, AIFs have raised commitments totalling ₹1,83,545 crore, with funds raised amounting to ₹1,11,232 crore and investments made totalling ₹1,23,310 crore
(Source: https://www.sebi.gov.in/statistics/1392982252002.html | Note: Cumulative net figures as at the end of the quarter ending Sep 30, 2024).
Indian economy is poised for growth, supported by reforms such as the Goods and Services Tax (GST), the Insolvency and Bankruptcy Code, and the Digital India initiative. These changes create a favourable environment for investments in various sectors, particularly for funds that can navigate the complexities and leverage emerging opportunities.
Alchemy's Approach to AIF Category III Funds
Alchemy Capital Management has established itself as one of the prominent players offering Category III AIFs through its innovative investment strategies and a deep understanding of the Indian equity market. One of our Category III AIF offerings is Alchemy Leaders of Tomorrow (the Fund), a brief introduction of the same is given below.
Alchemy Leaders of Tomorrow** seeks to generate long-term capital appreciation by focusing on companies showing the best traits of adaptability to the new economic normal, driven by innovation and ingenuity.
The Fund shall invest in (i) Listed Indian Equities, (ii) Private Investment in Public Equity (“PIPES”) on listed Indian equities, and (iii) IPO and pre-IPO opportunities. It is market cap and sector agnostic with a minimum investment of INR 1 crore, and the suggested time horizon for investments is 3-5 years.
**One of the schemes of Alchemy Alternative Investment Trust is registered with SEBI as a Category III Alternative Investment Fund.
For more details about the funds and for the Private Placement Memorandum and its amendments, please connect with us at contactus@alchemycapital.com.
Disclaimer:
This blog is for informational purposes only and should not be considered as an offer or solicitation to buy or sell any securities or make any investments. We recommend readers to take independent advice before taking any investment decisions. Please refer to our Disclaimer and Disclosures for more details.
