Equirus sets up GIFT City-based small-cap AIF for offshore investors

Portfolio construction will be limited to 20 to 25 names, with an emphasis on earnings growth and valuation discipline

Equirus Asset Manager has launched a US dollar-denominated small-cap fund under the Category III AIF framework at GIFT City, aiming to tap offshore demand for India-focused equity strategies.

The fund — Equirus Long Horizon Offshore Investments Fund — will follow a bottom-up, benchmark-agnostic approach focused on listed Indian small-cap companies. It is open-ended and housed under the Equirus IFSC Trust. The minimum ticket size is $150,000, in line with IFSCA norms.

According to the fund house, the strategy seeks to identify companies with scalable business models, strong earnings visibility, and reasonable valuations. Portfolio construction will be limited to 20 to 25 names, with an emphasis on earnings growth and valuation discipline. The offshore strategy is a replica of the firm’s onshore PMS offering, which has generated a CAGR of 21.6 percent over the past eight years.

While offshore AIFs through GIFT City have gained traction due to regulatory and tax efficiencies, few funds currently target India’s small-cap segment. Equirus is positioning this fund to fill that gap, particularly for NRIs and OCIs looking for a compliant route to invest US dollar capital into Indian equities.

“Indian small caps are aligned with the consumption and manufacturing-led growth cycle now underway,” said Sahil Shah, Chief Investment Officer at Equirus Asset Manager.

The move adds to a growing list of managers using GIFT City to scale differentiated equity strategies aimed at long-term global capital.