Rakesh Jhunjhunwala's Alchemy Capital Management (Alchemy) has launched a new Category III Alternative Investment Fund (AIF)—Alchemy Emerging Leaders of Tomorrow. The AIF has a tenure of 4 years and is targeting a corpus of Rs 500 crore and more, the company said in a statement.
This new fund is launched with an aim of enabling investors to capitalize on the
immense growth potential of small and midcap companies that emerge as a leader. With a portfolio of 20-25 stocks that will be sector agnostic, the fund will focus largely on small and midcap companies with minimum 65 percent allocation. The portfolio will also include investments in large caps and about 10 percent in IPO opportunities or any other instruments permitted by applicable laws, the company said.
The scheme aims to raise investments from Resident Indians, NRI, HNI, Hindu undivided Family (HUF), Banks, Bodies Corporate, Partnership Firm, Accredited Investors & Trusts, seeking long-term wealth creation with high growth prospects.
The fund's strategy is to generate long-term capital appreciation by identifying high-quality companies with strong growth prospects benefitting from themes such as India’s rising discretionary spending, digitalization, global outsourcing, import substitution, and improving manufacturing competitiveness and investment, with a minimum investment of Rs 1 crore.
Hiren Ved, a market veteran, and Co-Founder, Director, CEO, and CIO at
Alchemy Capital Management will manage Alchemy Emerging Leaders of Tomorrow together with his colleague and CoFund Manager, Mythili Balakrishnan.
Commenting on the
launch of this new fund, Hiren Ved, said “India is on the cusp of a solid economic recovery led by manufacturing and digital-led businesses. While investors have already played the consolidation story of backing current leaders, our endeavour for Alchemy Emerging Leaders
of Tomorrow is to bet on new entrepreneurs with much more agile and innovative business models and have a hunger for quality growth."
Mythili Balakrishnan added, “We believe that India is entering a phase of
broad-based growth and the small and mid-cap space in India offers an opportunity to make attractive returns. Also, the small and mid-sized businesses have undergone multiple stressors over the past few years but have emerged stronger and are well placed to take advantage of the current demand environment. Our aim is to identify these businesses and stay invested in them for long-term capital appreciation.”
