What is the main focus of Grand Anicut Fund-2? How totally different is GAF 2 from different debt funds out there?
Grand Anicut Fund – 2 is a sector agnostic fund of Rs 1000 crore, together with greenshoe possibility. Its focus is on offering debt to midsize corporations with a turnover of Rs 100-500 crore. The cheque dimension will likely be Rs 15-100 crores with a tenor of 1-4 years.
We make investments in 4 broad classes – acquisition financing, promoter / buyback financing, development capital and capital restructuring. Debt compensation schedule is ready in accordance with projected future money flows of the corporate. Our analysis is finished on a standalone credit score foundation quite than investing alongside Venture Capital funds.
How many and which all SMEs have you ever supported in India? How do you construction offers?
The debt fund has an AUM of Rs 1000 crore ($135 – $140mn) and has made 30 investments. The SMEs the place we’ve got made investments embody Milky Mist, Bira, Curatio Pharma, Kaynes Technologies, Luker Electric, Manna Foods, Pricol Packaging, Lendingkart Technologies, Azure Hospitality.
We construction debt as per necessities of the founders. Debt compensation schedule is ready in accordance with projected future money flows of the corporate. We additionally present a variety of synergistic advantages to the startups by connecting them with our ecosystem and assist them elevate additional capital.
What is your typical time horizon for funding and what’s your price of return? How has it been for the 11 exits you made?
The tenor for the funding varies from deal to deal and may be wherever between 1-5 years. We have had 10 exits from Fund-1 and a pair of exits in fund-2 until now. In Fund 1 exits the gross IRR (Internal Rate of Return) was roughly 20% and in Fund 2 exits, the gross IRR was approx. 21%.
In the primary debt fund, we’ve got already returned 30% of the investor’s principal and 80% of capital together with the quarterly curiosity funds forward of the top of our fund life. Fund-1’s DPI (Distribution to Paid-in capital) is 80%. (
not too long ago launched an AIF benchmarking report, in line with which DPI for FY17 Vintage is 39%).
Our thesis is that we are giving capital to founders for a specific alternative or to attain a specific goal and scale their enterprise to a degree the place they’ll obtain a desired end result. Thus, if founders are capable of obtain these targets or scale to that degree sooner than our estimated timeline, we accommodate them in taking an early exit.
How do you intend to deploy the present fund– and wherein all sectors?
Both the debt funds GAF-1 and GAF-2 are sector agnostic funds, and we are going to proceed to take a position throughout sectors (besides actual property).
What are the important thing belongings you look for within the corporations you put money into? What are a few of your current investments?
The key parameters that we glance for whereas investing are: The alternative offered and potential development of the corporate; Future money movement era; safety construction; potential dangers and mitigants; present cap-table. Some of our most up-to-date investments are: ASG Eye Care Hospitals, Curatio Healthcare, Wow Momo, Wingreens, Akna Medical.
What new tendencies do you see within the venture investing house in India?
Mass digitization and the rise of investments within the D2C (Direct to Consumer) section. We additionally see more investments in deep tech areas given the significance of superior know-how – Saas, robotics, automation, and superior tech/ house tech, Fin-tech. The ecosystem and its enablers have grown considerably and with new ventures lined up for IPOs within the coming years, investors are getting the required confidence and are opening up capital to progressive and disruptive ventures.
Remote and digital recruitment can develop into the norm with the elevated inclusion of AI and ML within the office. The significance of different important instruments like cloud computing can be changing into evident.