New launch of Emkay Emerging Stars Fund- Series IV, a Category III AIF

01 Jul 2021

Emkay Investment Managers Ltd (EIML), the asset management arm of Emkay Global Financial Services Ltd, has announced the launch of the Fourth Series of its maiden and Category III AIF ‘Emkay Emerging Stars Fund’. EIML is aiming to raise Rs 500 crores from the latest fund. The fund will be managed by a team led by Sachin Shah, Fund Manager, Emkay Investment Managers.

As per the company, the launch of the fourth series is in response to popular demand post the stellar performance of the first three series of the fund. While series I and II of the AIF have delivered over 14% CAGR returns since inception, AIF III has delivered over 20% CAGR returns, as on 30th June, 2021. The returns for all previous series have been over 110% for the past one year (CAGR).

The investment objective of the fund is to generate long term capital appreciation for investors from a portfolio of equity and equity related securities. Emkay Emerging Stars Fund Series-IV will be investing in 20-25 emerging companies, mainly in small-cap space with a decent outlook or track-record of cash flows, a strong balance sheet, business scalability, inherent profitability, and purchase price discipline.

As per Emkay, one of the unique features of the fund is a Flexible Subscription Model that enables investors to choose from three types of payment options – 100% on application, three tranches of 30-30-40 percent across 6 months and 10% every month for 10 months. The fund which is open for both domestic and NRI investors also offers the option for quarterly redemption post an initial lock-in period of one year.

Vikaas M Sachdeva, CEO, Emkay Investment Managers Ltd, said ‘The fund has been introduced at a time when the uncertainty around the pandemic is largely under control. Economic growth is likely to see an upward trajectory going forward. Our aim will be to provide superior, benchmark beating returns for our investors.’

Sachin Shah, Fund Manager, Emkay Investment Managers Ltd, said ‘We see tremendous opportunities for growth in the mid and small-cap companies. Our experienced investment team, backed by a robust research division and a time-tested investment strategy will help us to create meaningful alpha for our clients.