India-Focused Alternative Investment Funds more than Double During 2014
During 2014, India’s alternative investment funds (AIFs) or money collected from high net-worth investors to invest primarily in unlisted securities more than doubled, the fastest among all other traditional investment vehicles.
AIF
managers raised capital commitments worth Rs.20,457.45 crore from
affluent Indian investors till the end of December from Rs.11,186.36
crore in the previous year. Of this money that was committed by
investors, asset managers raised funds to the tune of Rs.7,790.52 crore
till December compared with Rs.2,883.49 crore collected a year earlier.
Local
alternative fund managers, including private equity (PE) and venture
capital (VC) funds, have followed their overseas counterparts in pouring
money into Indian technology and e-commerce start-ups, triggering a
boom in early-stage investments. In addition, prospects of a rebound in
India’s economic growth have prompted wealthy investors in the country
to embrace riskier investments in private equity, real estate and hedge
funds in search of higher returns.
“Globally,
AIFs represent 10% of an investor’s assets, so that way, India is at a
nascent stage,” said Andrew Holland, chief executive officer (investment
advisory) at Ambit Investment Advisors Pvt. Ltd, which has launched an
AIF in the hedge fund space. “In the next 4-5 years, I feel the AIF
industry in India will easily cross the $4-5 billion mark in terms of
investments made.”
Source: Livemint
