The asset management company has concluded the fund raise including the green-shoe option of Rs 500 crore within three months from its first close owing to robust response from investors and partners including family offices, high networth individuals (HNIs) and non-resident Indians (NRIs).
The fund aims to invest in unlisted mid-to-late-stage innovative companies with strong long term growth prospects.
“The strong response received by the Axis Growth Avenues Fund is a reflection of the long-term opportunities in the fast-evolving Indian digital economy. The start-up ecosystem has expanded significantly in India offering substantial wealth creation opportunities for investors in new-age businesses,” said Chandresh Nigam MD & CEO, Axis AMC. “The speed at which we have concluded the fund raise shows the confidence that our investors and partners have in us as we pursue the wealth creation potential of this space with our unique investment philosophy.”
Axis Growth Avenues AIF will primarily invest in technology-enabled companies with scalable business models and a favourable risk-return profile. The fund house will target a portfolio size of 8-10 companies with the deal size ranging from Rs 100 crore to Rs 150 crore each. The total term of the fund is five years from the date of its final closing.
Positioned to take advantage of the macro-economic opportunities, the fund focuses on sectors that promise multi-year growth potential.
“As the digital transformation continues in India, more and more innovative business models are being tried out and are successfully scaling up. We are also seeing the coming of age of the unlisted ecosystem with new fund launches, greater investor interest, a growing secondary market and most importantly the opening up of the IPO option for the new age tech businesses,” said Ashwin Patni, Head Products & Alternatives, Axis AMC.
According to Patni, with the Axis Growth Avenues Fund, the asset management company is seeking to invest in ambitious founders and management with scalable asset-light models in sectors that have the promise of delivering significant upside in the next decade.
The AMC has a strong pipeline of investments and expects to start deploying funds from the AIF soon. The fund will aim to deliver around 12% internal rate of return (IRR).
The AIF is looking to capitalize on innovation and growth in the economy and to invest in companies that are benefiting from these trends. The fund will be primarily focused on investing in sectors including financial services especially
, technology, e-commerce, and edtech.
While making the investments, the fund will ensure that the investee company has a clear plan to go public with an initial public offer (IPO) over 3-5 years’ horizon and preferably the founders are open to a strategic sale for an optimum value.
The fund will be keen on investing in companies that are likely to emerge as beneficiaries of the fast-evolving digital economy as either as a disruptor, enabler or adaptor. It will also ensure the presence of established investors who are shareholders in the company through previous rounds of funding.