UTI AMC is set to launch series II of its category II structured debt fund UTI Structured Debt Opportunities Fund II.
In a draft red herring with SEBI for IPO, the AMC said that the after the success of UTI Structured Debt Opportunities Fund I, the AMC is all set to launch a new fund to encash the emerging opportunity to provide credit in situations which is not serviced by banks and non-bank finance companies. “We are seeking to grow our alternative investment funds business, leveraging and augmenting the new team we hired at UTI Capital in 2017,” the AMC said.
In fact, the fund house said that it has raised uncalled commitment of Rs.1.80 billion through this fund. The AMC said, ”We have uncalled commitments of ₹0.6 billion in respect of the UTI Structured Debt Opportunities Fund I and ₹1.8 billion in respect of the proposed UTI Structured Debt Opportunities Fund II, both managed by UTI Capital Private Ltd. (“UTI Capital”).”
“We have one venture capital fund (the Ascent India Fund), which, as of September 30, 2019, had total closing AUM of ₹0.5 billion (calculated on the basis of the cost of its remaining investments). We also have three other alternative investment funds (the India Infrastructure Development Fund, Pragati India Fund, and UTI Structured Debt Opportunities Fund I) which, as of September 30, 2019, had total closing AUM of ₹4.0 billion, ₹0.9 billion and ₹8.1 billion, respectively (calculated on the basis of investor capital commitments). Our alternative investment funds have varying fee structures centred around an annual management fee and certain performance-related incentives. Our performance-related incentives entitle us to receive an amount which is calculated as a percentage of the amount of net investment gain by the fund, as at the date when the incentive payment is to be determined,” said the AMC.