Ahmedabad-based financial services company
Monarch Networth Capital
will soon launch its Rs 250 crore category III AIF fund and a Rs 100 crore startup fund that it will look to raise from high networth individuals or HNI
s, a senior company official said. It will also apply for a mutual fund license in the current financial year.
While the long-only Cat III fund will invest in listed companies, the startup fund will look to back emerging tech-focused companies with an initial cheque size of Rs 5 crore.
The company is targeting a final close of the said funds by end of the current financial year, said Vaibhav Shah, managing director, Monarch
Networth Capital. This will be the company’s second Cat III fund after it launched a Rs 70 crore AIF in October 2020.
Through its maiden AIF, the company has invested in Tata Metaliks, Kirloskar Ferrous, Polycab, Gujarat Gas and Galaxy Surfactants among others.
“Since the launch of the fund in October last year, the AIF has generated returns of 54% against the Nifty returns of around 35% in the same period,” said Shah.
According to him, the AIF is focused on picking businesses which have leadership positions in niche products or services and have consistently shown a double digit compounded annual growth rate in operating cash flow.
“The company plans to launch its second AIF of Rs 250 crore in the next two months. We want to capitalize on our strong retail base of 2.5 lakh retail and HNI clients for our fund-based businesses,” Shah added.
The company will also apply for the MF license in the current financial year, he said.
The company’s Q1FY22 net profit has soared 8x year-on-year to Rs 15 crore from Rs 1.88 crore.