Avendus Absolute Return Fund raises Rs2,300 crore corpus in six months1 min read . Updated: 23 Oct 2017, 12:27 AM IST
Given the strong inflows that the fund has witnessed, Avendus is now contemplating temporarily 'pausing' subscriptions to the fund
Mumbai: The Avendus Absolute Return Fund, a hedge fund launched by Avendus Capital, has raised a corpus of Rs2,300 crore (approximately $370 million) in just over six months since its launch, two people aware of the development said, requesting anonymity.
Avendus Absolute Return Fund, managed by a team led by Andrew Holland and Vaibhav Sanghavi, had crossed assets under management (AUM) of Rs1,000 crore at the end of July.
The category III AIF (alternative investment fund) invests in Indian-listed equities and equity derivatives, targeting to produce absolute returns with lower volatility than the overall stock market. The fund seeks capital appreciation and positive returns in an efficient and risk-adjusted manner through long and short positions in equities, futures and options across various market scenarios.
A spokesperson for Avendus confirmed the development in an emailed response to queries.
Given the strong inflows that the fund has witnessed, Avendus is now contemplating to temporarily close subscriptions to the fund, according to the people cited above.
“We will be “pausing", not closing at the end of October and will look to reopen for subscriptions in the future," the spokesperson for Avendus said.
The inflows seen by the fund have been driven by strong distribution and fund performance, among other reasons, the spokesperson said.
“Investors are increasingly appreciating risk-adjusted funds like the Avendus Absolute Return Fund, which provides lower volatility than traditional funds. The performance of the fund since March-end September is +11.7%," the spokesperson added.
Avendus is raising the fund from investors including high net-worth individuals (HNIs), multi-family offices and corporate treasuries.
Holland joined Avendus in September 2016, when the investment bank hired the entire top management of Ambit Investment Advisory, including chief executive officer Holland, managing director Vaibhav Sanghavi and marketing head Bhautik Ambani.
Holland joined Ambit in 2008 and managed its flagship hedge fund, Ambit Alpha, which was acquired by financial services group Edelweiss in September, last year. Before he joined Ambit, Holland was the managing director at strategic investment group at Merrill Lynch India.
Ambit Alpha had assets under management of Rs1,100 crore when Edelweiss bought it.
Avendus Capital is controlled by US private equity firm KKR and Co., which invested an undisclosed amount in the company to acquire a majority stake in 2015.
Since then, Avendus has embarked on a journey to diversify its business beyond its core area of investment banking.