The Category III AIF will be a four-year closed-end fund focusing on capex-led growth for the next decade, and will back companies with deleveraged balance sheets, and benefiting from government incentives, low interest rates and increasing domestic and export demand
MUMBAI : InCred Asset Management Co., the fund management arm of financial services firm InCred, has launched its second alternative investment fund (AIF), which will invest in publicly-listed companies, Mrinal Singh, the company’s chief executive and chief financial officer, said in an interview.
The Category III AIF will be a four-year closed-end fund focusing on capex-led growth for the next decade, and will back companies with deleveraged balance sheets, and benefiting from government incentives, low interest rates and increasing domestic and export demand.
“We are talking about a very long runway of capex that we will see and we think this is a very long and large theme. This will not just be about looking for high ROC (return on capital) and ROE (return on equity) businesses, but you have to look at what is the product, what is the advantage, where they stand in the competitive landscape, is their capex optimal, is the demand showing up?” he said. “We believe that the time has come for being early in this trend.”
The fund will primarily invest in mid- and small-cap stocks that can benefit from strong earnings growth and rerating of businesses.
