InCred Asset Management, the fund management arm of financial services firm InCred, has launched its second alternative investment fund (AIF), which will invest in publicly listed companies, said a senior executive of the company in an interaction with Mint.
“We have launched our new AIF as we are slowly stepping up the business. This is our second AIF. The first aif was launched in Sept of 2019. We have a decent track record, it has delivered close to 30% CAGR returns,” said Mrinal Singh, CEO and CIO, InCred Asset Management.
“When we feel there are certain interesting pools of opportunities that will potentially do well for the client, that is when we conceptualise and go to the market,” Singh added.
The four year close ended fund’s investment is based on the theme of capex led growth over the next decade. The fund will focus on factors making the current environment most favourable for investors such as export demand, deleveraged balance sheets, government incentives, low interest rates and continuous domestic demand.
“We are talking about a very long runway of capex that we will see and we think this is a very long and large theme. This will not be just about looking for high ROC and ROE businesses, but you have to look at what is the product, what is the advantage, where they stand in the competitive landscape, is their capex optimal, is the demand showing up? We believe that the time has come for being early in this trend and being early has the advantages of reaping higher gains. We believe that your entry prices and being early in a theme significantly impacts the returns,” said Singh.
The fund will primarily invest in midcap and small cap stocks that can benefit from strong growth in earnings and re-rating of businesses.