Products

Alternative Investment Funds
Alternative Investment Funds

High Yield Secured Debt Fund (Category II)

A 4-year close-ended Category II AIF which will invest in fully secured high yielding securities issued by Indian Real Estate developers/ companies predominantly in South India.

Mauritius feeder fund to pool monies from international investors.

Key Product Features

Instrument Structure
  • 100% of the deals to be debt focused with fixed returns from coupons and redemption premiums. Within this:
    1. ~75 - 80% of the portfolio to be focused on self-liquidating residential real estate projects
    2. ~20 - 25% of the portfolio may also participate in security backed special situations deals that could have commercial assets/ other physical collaterals
  • Typically 2 - 3 year deals; with amortising loans
  • Endeavour to create a diversified portfolio
  • Single company exposure limited to a maximum of 25% of the fund
Transactions
  • A mix of transactions at various stages; the fund will largely focus on post approval projects and not take land stage risks unless backed by existing cash flows
  • Business cash flows are base case exit routes for loans i.e. non-capital markets correlated
Focused Product & Customer Strategy

Opportunistic high yield secured credit to:

  • Tier 2 & 3 developers predominantly in Chennai, Bangalore, Hyderabad & to a smaller extent, other select micro markets like Pune/ Mumbai for early stage working capital needs/ refinancing on-going projects backed by mortgage + cash flows

Medium yield secured credit to:

  • Tier 1 developers for corporate funding backed by cash flows
  • Select Tier 2 & 3 developers for construction finance and working capital purposes (i.e. relatively lower execution risks) backed by mortgage + cash flows

* Please read the Private Placement Memorandum and Fund documents carefully before making an investment.

High Yield Secured Debt Fund II (Category II)

A 5-year close-ended Category II AIF which will invest in fully secured high yielding securities issued by Indian Real Estate developers/ companies predominantly in South India.

Mauritius feeder fund to pool monies from international investors.

Key Product Features

Instrument Structure
  • Focus on residential projects, commercial selectively
  • Typically 3 - 4 year deals; with amortising loans
  • Endeavour to create a diversified portfolio
  • Each investment around INR 50 crore
  • Single company exposure limited to a maximum of 25% of the fund
Transactions
  • A mix of transactions at various stages; the fund will largely focus on post approval projects and not take land stage risks unless backed by existing cash flows
  • Business cash flows are base case exit routes for loans i.e. non-capital markets correlated
Focused Product & Customer Strategy

Opportunistic high yield secured credit to:

  • Tier 2 & 3 developers predominantly in Chennai, Bangalore, Hyderabad & to a smaller extent, other select micro markets like Pune/ Mumbai for early stage working capital needs/ refinancing on-going projects backed by mortgage + cash flows

Medium yield secured credit to:

  • Tier 1 developers for corporate funding backed by cash flows
  • Select Tier 2 & 3 developers for construction finance and working capital purposes (i.e. relatively lower execution risks) backed by mortgage + cash flows

* Please read the Private Placement Memorandum and Fund documents carefully before making an investment.

Nano Cap Series I & II (Category III)

A 4-year close-ended Category III AIF that will invest in 15 to 25 high conviction nano cap stocks - market cap less than INR 1,500 cr at the time of investing.

Investment Strategy

Our strategy is founded on

  • Sound businesses with visible growth and profits
  • Managements focussed on creating shareholder wealth
  • Strong financials - efficient capital allocation, high return ratios
Fund Highlights

Under-invested, under-researched segment between VCs and small caps-offering potential for outsized returns in a patient long term investing style

Opportunity to leverage on research which constantly throws up several high potential investments

Identify companies with potential for strong growth that can expand into higher valuations

Invests in stocks predominantly with a market cap of INR 1,500 crores and below at the time of initial investment

Focused Portfolio of 15-25 companies, averaging around 20

4-year close ended fund with limited exit window

Endeavour to meet the Management of the Investee companies regularly

* Please read the Private Placement Memorandum and Fund documents carefully before making an investment.

Sundaram India Premier Fund (Category III)

A 4-year close-ended fund that invests in the growing sectors of consumption and consumer discretionary.

Investment Strategy
  • Long only buy and hold strategy
  • Concentrated set of stocks; Market cap agnostic
  • Companies that are expected to benefit from increasing 'consumption expenditure' of the overall population
Fund highlights
  • 15 high conviction stocks in the portfolio
  • Theme: Consumption
  • Urban Premium Lifestyle
  • Housing and Electricity
  • Rural consumption growth
  • Fund is likely to have major allocation towards stocks in discretionary spending space
  • 4-year close ended fund with limited exit window

* Please read the Private Placement Memorandum and Fund documents carefully before making an investment.

Acorn (Category III)

A 4-year close-ended fund investing in small and mid-cap stocks with the objective of generating long term capital appreciation.

Fund Highlights
Investment Strategy:

A bottom-up approach investment process to invest in companies with the potential to grow from good to great.

Acorn
Strong products
Strong brand

High growth businesses, sustainable competitive advantages, niche offerings

Strong financials
Sound financials

Maintain margins, cash flows and strong balance sheet despite competition

Quality management
Quality management

Promoters, management, good corporate governance

Portfolio:
small cap

~20 high conviction mid and small cap stocks

Key Focus Areas

Limited exit window post lock-in (refer to the Fund documents)

investee company

Min. 50% in midcaps, Max. 50% in small caps and 10% in large caps (optional)

Key Focus Areas

Key Focus Areas: Consumer Discretionary, Industrials, Manufacturing, Private Banking/ NBFCs

Please refer to the fund documents for more details