After a mere 3% quarterly growth in the June quarter this year, commitments raised in the Indian AIF industry has witnessed a recovery in the September quarter.
SEBI’s latest data shows that the commitment raised (equivalent to AUM in MF parlance) as on September this year has increased by 9% to Rs 3.17 lakh crore from Rs 2.90 lakh crore in the preceding quarter. The commitments raised figure has increased by 46% from September 2018, when it stood at Rs 2.17 lakh crore.
The recovery is likely because of the government’s decision to withdraw higher surcharge on super rich. Experts attributed the slowdown in June quarter this year to introduction of higher surcharge on HNIs and UHNIs.
|
Quarter |
Commitment raised (Rs crore) |
On-quarter change (Rs crore) |
On-quarter change |
|
September 2019 |
3,16,863.76 |
26,523.83 |
9% |
|
June 2019 |
2,90,339.93 |
8,191.58 |
3% |
|
March 2019 |
2,82,148.35 |
42,737.45 |
18% |
|
December 2019 |
2,39,410.90 |
22,181.82 |
10% |
|
September 2019 |
2,17,229.08 |
|
|
A deeper look into the data shows that increase in the commitments raised figure was largely driven by Category 2 funds. The Category 2 AIFs, which invest in private equity, structured debt and stressed debt, have grown by 14% to Rs 2.38 lakh crore in September 2019 from Rs 2.08 lakh crore in June 2019.
Category 1 AIFs witnessed a marginal growth of 3% in commitments raised. Category 1 AIFs invest in start-ups or early stage ventures, social ventures, SMEs or infrastructure funds. This category has raised commitments worth Rs 36,978 crore as on September this year as against Rs 34,978 crore as on June 2019.
Meanwhile, Category 3 AIFs, which include long short funds, long only funds and hedge funds, saw a sharp fall of 10% in its commitments. The commitment raised in this category has declined to Rs 45,223 crore form Rs 47,055 crore in the June quarter.
|
AIF categories |
Commitment raised as on Sep 2019 (in Rs crore) |
Commitment raised as on Jun 2019 (in Rs crore) |
Change in absolute terms (in Rs crore) |
Change |
|
Category I |
36,140.27 |
34,978.00 |
1,162.27 |
3% |
|
Category II |
2,38,500.05 |
2,08,306.49 |
30,193.57 |
14% |
|
Category III |
42,223.43 |
47,055.43 |
-4,832.00 |
-10% |
|
Grand Total |
3,16,863.76 |
2,90,339.93 |
26,523.83 |
9% |