Avendus Capital to launch its category III AIF

Avendus Capital today announced the proposed launch of its category III alternative investment fund (AIF) which will invest in domestic listed equities as well as equity derivatives.

Avendus Absolute Return -- the new equity long/short (hedge fund) AIF venture of Avendus Capital -- is awaiting capital market regulator Sebi's approval and is targeting to raise Rs 500 crore.

The fund is expected to deliver gross returns of 15-20 per cent consistently irrespective of market conditions, on year-on-year basis.

The new fund offer is expected to open next month and would be launched by Avendus Capital Public Market Alternate Strategies, an asset management business of Avendus Capital.

"We are delighted to offer investors a fund which will deliver consistent positive returns irrespective of volatility in global and local markets," Avendus Capital Alternate Strategies chief executive Andrew Holland told reporters here.

Talking about the risk profile of the fund, Bhautik Ambani, who would be managing the fund said, "the product will attract a lower volatility (5-6 per cent per annum) which translates into one third of the risk compared to other equity products".

The fund is expected to attract investments from family offices, high net worth individuals, ultra high net worth individuals as well as corporate treasuries. The fund allows for a minimum investment of Rs 1 crore.

The Avendus Group is a leading provider of financial services with an emphasis on customised solutions in the areas of financial advisory, wealth management, structured, credit solutions and alternative assets management.