Alternate Investment Funds Reach Nearly $6 Billion in Commitments
Alternate Investment Funds (AIFs) in India have raised commitments for nearly $6 billion since October 2012.
Commitments raised is similar to assets under management in mutual fund parlance.
Troubled Beginning & Rapid Rise
In August 2011, when SEBI began the process of regulating this ecosystem, it ran into resistance form the industry, which consists of private equity funds, venture capital funds, infrastructure debt funds, real estate funds, and the like. These funds pool private capital from high net worth and institutional investors and provide risk capital for companies.
By March 31, 2016, the ranks of AIFs registered with SEBI rose to 209. Collectively they have commitments for nearly Rs 38,900 crores, of which they have already raised Rs 22,696 crores.
Of their corpus, AIFs have already invested Rs 18,237 crore.
Category I Funds
AIF Category I funds invest in infrastructure, social ventures, small and medium enterprises and provide venture capital for start-ups. As on March 31, infrastructure funds have invested Rs 1,693 crore, while venture capital funds have invested nearly Rs 850 crore.
Category II Funds
Category II funds, which include private equity funds, debt funds and fund of funds, have commitments of over Rs 24,000 crore. They have so far raised Rs 14,545 crore and invested over Rs 11,500 crore.
Category III Funds
This category, which includes hedge funds and funds that use leverage to raise funds, have commitments worth Rs 4,249 crore. So far they have invested Rs 3,907 crore out of the Rs 4,103 crore raised.
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