The fund aims to capitalise on India's robust economic growth trajectory by investing in mid to late-stage and pre-IPO companies across key sectors. The fund has a target corpus of Rs 1,000 crores with a green-shoe option of up to Rs 1,000 crores. 

The close-ended Abakkus Four2Eight Opportunities Fund is built on a foundation of fundamental research and a disciplined investment approach. The fund will focus on identifying companies with established business models, proven profitability, and strong management teams. 

The investment strategy centres around three key pillars as follows.

Mid to Late-Stage Investments: The fund will primarily target companies in the mid to late stages of their growth cycle, including pre-IPO opportunities. This approach aims to capture the significant value-creation potential of these companies while mitigating the risks associated with early-stage ventures.

Secondaries and PIPE Deals: The fund will also explore secondary transactions, acquiring stakes from existing investors, and participate in private investments in public equity (PIPE) deals. These strategies offer opportunities to access high-quality companies at attractive valuations.

Focus on Key Growth Sectors: The fund will prioritise investments in sectors poised for substantial growth in the coming years, including financial services, consumer and retail, IT and ITeS, healthcare, and manufacturing. These sectors are expected to contribute significantly to India's economic expansion, driven by factors such as rising domestic consumption, favourable demographics, and digital transformation.

The Abakkus Four2Eight Opportunities Fund is currently evaluating 3-4 promising investment opportunities. The fund is in advanced discussions with a rapidly growing mining EPC company and an aluminium engineering company. 

The minimum commitment amount is Rs 1 crore, with an initial drawdown of 20%. The fund has a tenure of 6 years and 6 months, with the possibility of a two-year extension. The commitment period is 36 months from the date of closing; may be extended up to 12 months. Sponsor commitment is 2.5% of the corpus or Rs 5 crore, whichever is lower.

The Abakkus Four2Eight Opportunities Fund is structured as a Category II AIF, offering pass-through taxation benefits to investors. Taxes will be discharged at the investor level, providing greater tax efficiency. TDS to be deducted for CAT-II resident investors is 10% and as per tax rates during the year subject to DTAA for NRI investors. Earlier LTCG on unlisted shares was 20% with indexation. In Budget 2024, LTCG on unlisted shares reduced from 20% to 12.5% (without indexation).

Abakkus has a track record of delivering performance across its AIFs and PMS strategies. The firm's flagship AIF, the Abakkus Growth Fund - 1, has generated a remarkable 252.7% absolute return since its inception in July 2018, significantly outperforming the benchmark S&P BSE 200 (135.2%). It also has other AIF offerings such as Abakkus Emerging Opportunities Fund - 1, Abakkus Growth Fund - 2, Abakkus Diversified Alpha Fund and Abakkus Diversified Alpha Fund - 2.

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