Karma Capital expands product line-up with introduction of AIF

Karma Capital, equity-led portfolio management services firm, today announced the launch of the Karma Capital India Fund, Series 1, which allows long term equity investors to invest in Karma Capital’s investment solutions through the AIF route - an investment vehicle suited to the needs of UHNIs and their advisors.

The fund will invest in good quality businesses mainly beyond the top 100 listed Indian companies, that have crossed the challenging phase of initial scaling up and are market leaders in their respective fields, it said in a press release. Within this universe, the fund will identify companies that are growing faster and are attempting to transition to the next level of scale and size in terms of sales and profitability.

Nikhil P. Desai, Co-Founder and Co-CIO at Karma Capital said, “Apart from the long term structural growth trends such as a large domestic market, favorable demographics and a maturing equity market in India, there is an increasing likelihood that in the near to medium term, more technology and manufacturing jobs will relocate here from across the region. This AIF will invest in opportunities emerging due to these long and mid-term trends.

“All our investment solutions leverage Karma Capital’s bottom up and fundamental research oriented investment capability that has a track record of 16 years,” said Rushabh Sheth, Karma Capital’s Co-Founder and Co- CIO.

“The launch of the Karma Capital India Fund, will allow us to cater to a wider set of family offices, institutions and UNHIs that are keen to invest in a concentrated portfolio of quality businesses and those seeking a high level of growth”

This AIF aims to outperform Nifty small and mid-cap 400 TRI over a horizon of 3-5 years. The first drawdown of the commitment amount will close on 11th March, 2022. For this fund, the typical holding period will exceed more than 3 years. The tenure of the fund will be 42 months from closing of the final tranche (December 2022) with a one-time option to extend the tenure by 24 months.

Published on: Thursday, March 03, 2022, 03:28 PM IST