Avendus Capital Public Market Alternate Strategies, the asset management wing of Avendus Capital, on Tuesday announced the proposed launch of its category III Alternative Investment Fund (AIF).
The new Equity Long/Short (Hedge Fund) AIF venture of Avendus Capital has applied to the Securities and Exchange Board of India (Sebi) to launch the fund and its approval is expected shortly.
Alternative Investment Fund refers to any fund which is a privately pooled investment vehicle, which collects funds from investors, whether domestic or foreign, for investing it in accordance with a defined investment policy for the benefit of its investors.
Various types of funds such as hedge funds, PIPE Funds, etc., are registered as category III AIFs. The company is expecting to close the new fund offer (NFO) period on March 10.
The minimum investment in the fund during the NFO period is R5 crore. The fund will be investing in Indian listed equities as well as equity derivatives.
During an interaction with reporters, Andrew Holland, CEO of Avendus Capital Public Market Alternate Strategies, said the fund aims to deliver a return of anywhere between 15% and 20%.