Mumbai: Alpha Capital Advisors Pvt. Ltd, an investment management firm catering to wealthy individuals and families, said it will invest ₹ 1,500 crore in consumer facing businesses over the next three to four years. Alpha did not disclose the quantum of investment commitment it has received from the investors, who include ultra high net-worth individuals (HNIs) and family offices. It will, however, offer them an option to co-invest as well.
The hybrid structure called “The Alpha Pledge" (TAP) will let the investors take direct exposure in investments made by Alpha Capital besides placing funds in a blind pool of capital.
“Breaking away from the traditional blind pool fund model, Alpha has designed The Alpha Pledge as a hybrid structure whereby family offices and ultra high net-worth individuals have given an upfront commitment with exclusive top up co-investment rights to those who opt in," the firm said on Tuesday.
The funds will be deployed to provide growth capital to entrepreneurs building consumer-facing businesses such as consumer care products and brands, food and beverages, financial services and entertainment.
The average ticket size of investments is likely to be ₹ 100 crore- ₹ 150 crore. The firm aims to spread the investments across 10-15 deals. “Alpha Capital is largely agnostic to whether these businesses are listed or private including PIPE deals (public investment in private equity)," it said.
Founded in 2015 by Vishal Ootam and Vivek Anand P.S., Alpha Capital’s service offerings include tax planning and compliance, risk management and insurance, advisory services relating to stressed assets, private equity and working capital among others. While Anand was a managing partner at Bay Capital before founding Alpha, Ootam was Bay Capital’s managing director and chief executive.
In June this year, Alpha invested $14.8 million (₹ 100 crore) in CredAble, a startup focused on supply chain financing and vendor financing. In the last quarter of 2017, Alpha acquired a significant minority stake in food and beverages firm Food Link Services Pvt. Ltd, which runs two verticals: banqueting and catering, and casual dining.
In 2015, it also invested in Incred Finance, a non-banking finance company that provides loans to micro, small and medium enterprises. Its other loan offerings include consumer finance, small business loans, two-wheeler finance, student loans, school financing and affordable housing finance.
Alpha Capital chief executive Ootam said, “We believe that India is on the cusp of a consumption revolution and hence we are looking for businesses that ‘sell to India’."
Anand, the managing director, said: “We back established entrepreneurs who have built scalable businesses in the complex Indian market and have significant skin in the game."