Emkay Emerging Stars Trust today launched its first-ever five-year closed-ended Category III alternative investment fund (AIF) and seeks to raise Rs 200-300 crore from the scheme. The scheme, Emerging Stars Fund, has a fund raising commitment of Rs 200-300 crore, it said. Emkay Emerging Stars Trust is sponsored by Emkay Global Financial Services and managed by Emkay Investment Managers Ltd (EIML). The fund aims at generating long-term capital appreciation for investors with an investment horizon of five years in Indian equity. In last four and half years, the fund management team of EIML has generated returns at CAGR of over 25 per cent. The fund comes with a fund-raising commitment in the range of Rs 200 crore to Rs 300 crore. The investment universe of the fund is the top 300 to 1,000 companies ranked by market capitalisation. These companies will have market capitalisation between Rs 500 crore to Rs 5,000 crore.
“We are pleased to announce the launch of our first AIF which is backed by our research expertise,” Krishna Kumar Karwa, managing director, Emkay Global Financial Services, told reporters. “AIFs are at the cusp of significant evolution in India and with its diversification we see an attractive opportunity as a wealth creation asset for the high net worth individuals,” he added.
“In the last few years, especially during 2013 to 2016, small and mini cap companies have delivered better return on equity and return on capital employed and also delivered better CAGR. We will be targeting these securities as the investment universe for the fund”, Sachin Shah, fund manager, Emkay Investment Managers, said. The fund will be targeting HNIs and NRIs as the minimum investment one can have in the fund is Rs 1 crore, he said, adding through the fund we are targeting over 200 investors.