HDFC AMC is planning to foray into the alternative investment fund business, the fund house said in the draft offer document for its IPO. The AMC also sought SEBI approval to launch category III AIF, commonly known as hedge funds.
Currently, the fund house has SEBI’s go-ahead for category II funds, or private equity or debt funds.
“We anticipate launching our AIF operations depending on viable market opportunities,” the fund house has said in its red herring prospectus. “Some of the AMCs have started targeting the HNI segment with AIFs, and this can help boost the AMC revenue,” the mutual fund company’s draft offer document stated.
The total commitments raised in AIFs were Rs.1.40 lakh crore as on December 2017. Most of the commitments raised were in category II funds or private equity and debt funds (61.7%), followed by category III or hedge funds (20.4%) and Category I or venture capital funds (17.9%). Commitment raised is equivalent to AUM in mutual fund parlance.
