The concept of investments has broadened immeasurably over the past decade. The main reasons being global economic slowdown in 2008 and the on-going technological advances. The ability to go online and choose the best trading platform from a choice of dozens allowed us to look in new directions. The arrival of an exciting new era of cryptocurrencies and the growing trend among private investors to consider real estate represent two alternative investment opportunities at opposite ends of the risk spectrum. But while we might still call these alternative investments, they no longer meet that dictionary definition. 2018 has seen a growing interest in what you might call “alternative alternatives,” as investors continue to push the boundaries.
Markets regulator SEBI has issued a clarification that alternative investment funds cannot convert their existing open-ended schemes to closed-ended and vice-versa.
IIFL Asset Management Limited (IIFL AMC) has launched IIFL India Private Equity Fund, a close-ended SEBI-registered Category II Alternative Investment Fund (AIF), and targets raising around Rs 1,500-2,000 crore.
India is a capital-starved country and Indian startups and small businesses are struggling to access large pools of capital to grow, for technology, hiring, working capital, and other needs. India needs to attract more and more overseas capital to create and grow companies. Last year, over $26 billion in private equity/venture capital funds was invested in India, over 346 Alternative Investment Funds (AIF) formed with over $5 billion of investible capital. For a $2.2 trillion economy of India’s size growing at 7+ per cent, the need for funds is enormous. Over $9 billion is waiting to be invested from earlier funds.
Private equity (PE) and venture capital (VC) investments into South-east Asia hit a record US$23.5 billion in 2017, going by an inaugural report by the Singapore Venture Capital & Private Equity Association (SVCA).
Edelweiss Alternative Asset Advisors Ltd, a unit of the Edelweiss group, achieved the targeted base offering size of Rs. 2,000 crore for its infrastructure sector focused fund—Edelweiss Infrastructure Yield Plus Fund. The fund aims to raise another Rs. 4,500 crore via a green shoe option in the next 12 months, the company said in a statement.
Hedge funds will need to adopt artificial intelligence and machine learning in order to stay competitive in the years ahead, increasing competition with the likes of Amazon for the brightest technological minds.
That is according to trade body the Alternative Investment Management Association, which spoke to 25 hedge fund executives and academics for a report entitled Perspectives — Industry leaders on the future of the hedge fund industry.
Avendus Capital is raising Rs 3,000 crore to expand its kitty on alternative investments, with the financial services firm targeting family offices, high net worth individuals and corporate treasuries to sell its products.
The government announced it had exempted investments by individuals in some categories of start-ups from the so-called ‘angel tax’. The notification says start-ups may avail of the tax concession only if total investment, including funding from angel investors (those who make the initial equity investment) does not exceed Rs 100 million.
The digital revolution is presenting a bewildering mix of risks and opportunities for investors. At a time when technology is disrupting markets and transforming businesses with alarming speed, the risk of getting blindsided is an ever-present concern. Yet it cuts both ways. The explosion of data, analytics and connectivity has dramatically enhanced PE funds’ ability to assess companies in due diligence and to improve their performance during the holding period. As markets rapidly transform, funds can find as many opportunities as risks if they have developed the ability to handicap change better than the competition.