Alchemy Capital Management Private Limited, one of India’s pioneer Portfolio Management Services provider, has announced the launch of a new CAT III AIF scheme, ‘Alchemy Emerging Leaders of Tomorrow’, with a tenure of 4 years and is targeting a corpus of Rs. 500 crores and more. This new fund is launched with an aim of enabling investors to capitalize on the immense growth potential of small and midcap companies that emerge as a leader.
With a portfolio of 20-25 stocks that will be sector agnostic, the Fund will focus largely on small and midcap companies with a minimum 65% allocation. The portfolio will also include investments in large caps and about 10% in IPO opportunities or any other instruments permitted by applicable laws. The scheme aims to raise investments from Resident Indians, NRI, HNI, Hindu undivided Family (HUF), Banks, Bodies Corporate, Partnership Firm, Accredited Investors & Trusts, seeking long-term wealth creation with high growth prospects. The Fund’s strategy is to generate long-term capital appreciation by identifying high-quality companies with strong growth prospects benefitting from themes such as India’s rising discretionary spending, digitalization, global outsourcing, import substitution, and improving manufacturing competitiveness and investment, with a minimum investment of Rs. 1 crore.
Mr. Hiren Ved, a market veteran, and Co-Founder, Director, CEO, and CIO at Alchemy Capital Management will manage Alchemy Emerging Leaders of Tomorrow together with his colleague and Co-Fund Manager, Mythili Balakrishnan.
Commenting on the launch of this new fund, Mr. Hiren Ved, said “India is on the cusp of a solid economic recovery led by manufacturing and digital-led businesses. While investors have already played the consolidation story of backing current leaders, our endeavor for Alchemy Emerging Leaders of Tomorrow is to bet on new entrepreneurs with much more agile and innovative business models and have a hunger for quality growth. Picking winners from the small and mid-cap space is both challenging and exciting, and we want to give investors and family offices the platform to bet on the next set of leaders across a wide range of sectors.”
Mythili Balakrishnan, Co-Fund Manager has over 19 years of expertise in finance and markets, especially in equity analysis and fund management. She added, “We believe that India is entering a phase of broad-based growth and the small and mid-cap space in India offers an opportunity to make attractive returns. Also, small and mid-sized businesses have undergone multiple stressors over the past few years but have emerged stronger and are well placed to take advantage of the current demand environment. Our aim is to identify these businesses and stay invested in them for long-term capital appreciation.”
Alchemy Capital Management would be leveraging their experience of two decades in mid & small-cap in the PMS space and the experience gained from previous AIF schemes – Alchemy Leaders of Tomorrow – Closed Ended Fund, which matured on 29 November 2021 has given a CAGR of 22.1% since inception (i.e. 29 November 2018) vs its benchmark S&P BSE 500 of 17.4% and the Alchemy Leaders of Tomorrow (an open-ended scheme), that has given the 1-year return of 14.4% vs its benchmark S&P BSE 500 of 5.4% and a CAGR of 13.1% since inception ( i.e 03 January 2018) vs 11.1% benchmark.
