Former Reliance Capital veteran Sunil Singhania floats AIF, looks to raise Rs 1,200 crore

With domestic stock markets attracting strong inflows, alternative investment funds (AIFs) investing in Indian equities are thinking big.

Abakkus Asset Management, founded by former Reliance Capital global head of equities Sunil Singhania, has launched its first offering Abakkus Growth Fund and is looking to raise Rs 1,000-1,200 crore from rich investors.

Abakkus is an India-focused asset management company Singhania established this year. Abakkus Growth Fund is registered with the Securities and Exchange Board of India as a category-3 AIF and will be long-only in nature, referring to a policy of buying and holding assets and securities.

The minimum investment in AIFs is Rs 1 crore. Typically, AIFs target sophisticated and rich investors who want the services of niche fund manager, but at a cost structure comparable to mutual funds.

"We have started the roadshows and are meeting investors. A Rs 1,000-1,200 crore fund-raise should be possible. The fund will invest only in listed companies. 90% of the target fund portfolio will be multi-cap with a mid-cap bias, 10% will be in small-cap stocks. There will 30 stocks in the portfolio," Singhania told DNA Money.

Prior to starting Abakkus, Singhania, as global head of equities at Reliance Capital, oversaw equity assets and provided strategic inputs across Reliance Capital Group of companies including asset management, insurance, AIF and offshore assets. As chief investment officer – equities, he led the journey of Reliance Mutual Fund's equity schemes to be rated among the best. Reliance Growth Fund grew over 100 times in less than 22 years under his leadership.

"Abakkus Growth Fund plans to invest in companies that will show good growth over the next three to four years. It will be a diversified portfolio. The fund plans to raise money from investors in the US and non-residents based outside India," Singhania said. The AIF has filed documents on August 6 with the US Securities and Exchange Commission (SEC) in a bid to market the product to a wider base.

Furthermore, Singhania led Reliance Nippon Life Asset Management Ltd's international efforts and was instrumental in launching India funds in Japan, South Korea, and the UK, besides managing mandates from institutional investors based in the US, Singapore, and other countries.

...& ANALYSIS

• 90% of the target fund portfolio will be multi-cap with a mid-cap bias, 10% will be in small-cap stocks. There will 30 stocks in the portfolio
   
• The fund plans to raise money from investors in the US and non-residents based outside India