Investment management firm Alchemy Capital Management plans to launch a hybrid alternative investment fund (AIF) in early FY24, according to a top official. Hiren Ved, Co-Founder and CIO, Alchemy Capital Management, told businessline, “We are planning to launch an hybrid AIF, which will invest partly in listed company shares, in the early next financial year.” The fund will also invest in private equity opportunities, he said.
The fund will invest, along with other PE funds, in “slightly more mature growth companies, not start-ups” and Alchemy intends to raise capital in that fund. According to him, it will be a new breed fund, as there is considerable interest amongst family offices and wealthy investors to invest in AIF and participate selectively in private transactions.
“This year, we will get a good opportunity and valuations will be a little more reasonable. Last two years, the valuations were unreasonably high; we think correction will happen,” he explained.
Besides this, the firm, which manages an AUM of ₹6,600 crore across 2,326 families, is already in discussion with foreign investors interested in investing in India. The company also manages offshore capital and believes that there is a big opportunity in the India growth story over the next couple of years. It hopes to “raise upwards of about $100 million offshore next year”
Alchemy is also raising an AIF dedicated to small- and mid-cap strategy called Emerging Leaders of Tomorrow, which will close by mid-February; the fund will raise between ₹700 crore and ₹750 crore.
“We are looking at about 25-27 high-quality smaller mid-sized businesses that will benefit from the significant opportunities opening up in India,” The fund will invest in “EV companies, capital goods, engineering components, speciality chemicals, all these areas where Indian companies will become part of the global supply chain and also in healthcare, pharmaceuticals and financial services,” said Ved.