Emerging markets private equity fund Exhilway Global (EG) is to invest USD1bn in India, and will launch its flagship Exhilway Global Opportunities Fund (EGO) next month.
The fund, which plans to raise over USD2bn from the accredited investors based in US, Canada and UK, will operate under the newly introduced JOBS Act and plans to promote its EGO fund over the internet. EG will shell out USD30m on the digital marketing of the fund.
EGO is the world's first hybrid PE fund, which will give its investors a minimum debt return and an unlimited potential to make money over the equity pledged by the promoters of the investee companies. The tenure of the fund is kept at five years as compared to the industry average of eight to 10 years. The fund will offer complete capital protection as compared to other risky PE investments. Even before the fund is announced, the management has confirmed commitments worth USD70m from several large investors.
EGO has finalised close to 50 companies and is performing due diligence. EGO is an opportunity focused fund rather than being sector specific.
"India is an exciting investment destination; the PE market in India is still small but is booming. The middle class is aspirational and believes in spending. The rise in demand will give birth to many successful businesses," says Ajay Garg, chief executive, India operations.
The fund will target an annual return of 20 per cent p.a. followed by eight per cent p.a. on the investment.
"After rolling out EGO-I we plan to announce EGO-II which will invest in close to 100 companies, we plan to emerge as one of the largest private equity fund in India," says Rahul, president, India operations.
EG will also launch its alternative trading platform called Exhilway Link in December this year.
