Mumbai: Pantomath Group, a financial services firm, and Pi Square Investments, an investment advisory firm, are jointly raising a ₹400-crore fund that will invest in mature companies, primarily in the manufacturing sector.
The India Inflection Opportunity Fund will invest in companies that are 8-10 years old and are at an inflection point in terms of growth or size. The fund plans to raise ₹300 crore, with a so-called greenshoe option of ₹100 crore, based on demand.
Pantomath and Pi plan to raise the fund in April.
About 70% of the fund will be invested as equity across listed and unlisted companies, while the remaining will be debt, said Mahavir Lunawat, Pantomath’s chairman and managing director, in a phone interview. “We are looking for companies with a rural consumption theme, a proof of concept and with physical infrastructure, in sectors such as pharmaceuticals and chemicals."
Mumbai-based Pantomath currently offers services in fields such as investment banking, corporate advisory, compliance support and asset management, and lends against property and shares, among others. Pi Square manages investment risks by providing data-based asset management across sectors, including healthcare, education, fintech and logistics.
The fund will avoid sectors heavy on capital expenditure and regulations, according to Vishrut Pathak, senior partner at Pi Square and the fund manager for the new fund.
“We will avoid sectors that have a very strong capital expenditure cycle and excessive government regulations, such as infrastructure and real estate. Tier 2 and 3 will be a big part of out focus area and will account for more than 50% of the companies we invest in."
The joint venture aims to tap a largely domestic base of limited partners, or investors for the fund, comprising high-net worth individuals, family offices and institutional investors.
The fund will make about 25-30 investments of ₹10-15 crore each. It will have a life span of four to five years.