Chanakya Opportunities Fund I, a SEBI Registered Category II Alternative Investment Fund, on Tuesday announced the launch of a Rs 100 crore sector-agnostic SME-focused fund with a green shoe option of another Rs 100 crore.
The fund was launched by Kresha Gupta, a 24-year-old Chartered Accountant (CA) based in Ahmedabad. She is also one of the youngest woman investors in the country to launch an SME-focused fund.
The fund is a part of Chanakya Fund Trust, which got approval from markets regulator SEBI to launch a Cat 2 AIF in March this year.
On the launch, CA Kresha Gupta, Founder and Fund Manager of Chanakya Fund Trust, said, “Our goal is to create world-class investment products at competitive costs for investors in Indian markets. We will develop and launch products under this aegis. Chanakya Opportunities Fund I is our first offering. We are planning to raise Rs 100 Crores in the first year. This is a close-ended fund, and we will be accepting subscriptions for the tenure of 5 Years from the First Close with a Maximum Of Two Extensions Of 1 Year Each."
51% investment in unlisted SME companies
The fund will invest in profitable SME companies with high-potential opportunities in unorganized sectors. About 51% of the corpus will be invested in unlisted SME companies, termed startups in manufacturing, consumer products, and technology.
The fund will provide exit opportunities through primary markets as it intends to invest in companies that have the potential to get listed on SME exchange with small ticket size IPO
StepTrade Share Services Private Limited (Erstwhile Ace Share Services Private Limited) is the Investment Manager and Sponsor of Chanakya Fund Trust, led by CA Kresha Gupta and Mr. Ankush Kumar Jain, CFA.
Chanakya Opportunities Fund I is a closed-ended scheme that plans to invest in 25 odd companies with a ticket size ranging from Rs 2 crore to – Rs10 crore per company.
The fund will follow a strong filtration and due diligence process to identify the best investment ideas.
Investors with a time horizon of greater than one year can look at investing in this scheme. The fund aims to raise capital from resident and non-resident Indians, high-net-worth individuals (HNIs), banks, accredited investors, corporates, and trusts.