India: IDFC Asset Management plans to launch $315m new AIF

IDFC Asset Management is planning to launch an alternative investment fund targeted at high net worth investors looking to diversify their portfolios, said a report in The Economic Times.

The asset management firm is targeting to raise Rs 2,000 crore crore for this latest fund.

AIF regulations notified by markets regulator Securities and Exchange Board of India (Sebi) in 2012 divide privately managed funds into three categories. Categories 1 and 2 cater to venture capital, private equity and debt and infrastructure funds, while Category 3 are related to public market funds.

“We will primarily offer this product to family offices and high net-worth individuals,”  Vishal Kapoor, CEO IDFC Asset Management told the news paper. “The fund is an open-ended scheme that will aim to garner at least Rs 2,000 crore in the next two years.”

IDFC Asset Management Company Ltd. was established in 2000 and manages around Rs 74,000 crore in assets.

Last year, it had launched two major open-ended schemes—a balanced fund and a credit opportunities fund.

The minimum investment in the IDFC fund would be Rs 1 crore. Vijay Krishna Kumar, director – liquid alternatives, IDFC Asset Management, is the fund manager.

“We aim to generate returns from the spread between long and short positions,” said Vijay Krishna Kumar, director – liquid alternatives, IDFC Asset Management. “It (returns) should be in medium to high teens.”

Recently, Old Bridge Capital Manager, an asset management firm founded by Kenneth Andrade, former chief investment officer of IDFC Asset Management Co., also announced the launch of a public markets focused alternative investment fund, targeting a corpus of Rs400 crore. It was also looking to raise the capital largely from high net-worth individuals and family offices.

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