FOR IMMEDIATE RELEASE
Contact: Vik Mehrotra, 617-423-1901
Venus Capital targets scaling its India-focused lending fund to $250 million
BOSTON, MA – March 02, 2015 – Boston-based India-focused investment adviser Venus Capital is looking to scale the Venus India Structured Finance Fund (“Fund”) to a $250 million size in the next twelve months.
The fund was established nearly two years ago and lends to small and medium-sized companies in India through a Non-Banking Financial Company (“NBFC”), which started in June 2013. The NBFC currently has $25 million in assets under management and targets to raise $250 million in the next 12 months.
Venus Capital founder and CEO Vik Mehrotra says the fund generates absolute returns uncorrelated to any indices and could reduce risk in investors’ portfolios.
Under the fund, investors can participate in secured and unsecured lending with the objective of preserving capital and generating current annual yields in INR of 15-18% without equity kickers.
The strategy targets 25-30% return in INR with equity kickers, although the NBFC’s fair market value has already achieved a cumulative appreciation of 60.5% since inception in June 2013 through January 2015 in US dollar terms at an annualized standard deviation of 17%, Sharpe ratio of 2.01, and Sortino ratio of 3.5. During the same time period, the Nifty index had a cumulative appreciation of 34.6%.
In effect, Mr. Mehrotra explains, direct lending strategy is less risky than investing in the Nifty index which has an annualized standard deviation of 23.5%, Sharpe ratio of 0.89, and Sortino ratio of 0.88. “It offers the best chance of producing private equity like returns with debt-like risks in India”.
Venus Capital is well known for its low risk, high alpha approach for investing in India and has generated annualized returns of 8.06% between January 2003 through December 2013 for its arbitrage strategies at an annualized standard deviation of 3.98% and a Sharpe ratio of 1.56.
Mr. Mehrotra added, “By thinking out of the box, Venus has always delivered unique strategies to its investors and has set itself apart from the crowd of long hedge fund managers for India.”
Venus has global reach with local knowledge. Over its many years of presence in emerging markets, it has developed strong relationships with brokers, analysts, fund managers and independent investors, all of whom are invaluable in assisting Venus to identify, source, and analyse these opportunities. Venus has partnered with RP&C in London and the Goel family (of Dhampur Sugar) in India to enhance its worldwide presence with strong local relationships.
This press release is published solely for information purposes and is not to be construed as an offer to sell or the solicitation of an offer to buy any security. Forward looking statements that relate to future events or future financial performance can only be predictions and the actual events or results may differ from those discussed. The performance information presented is unaudited and may be subject to modification during the annual audit process. Past performance is not necessarily indicative of the future results and every investment has the potential for loss as well as profit.
Information regarding investment in the Fund is located in the Fund’s private placement memorandum and standard subscription agreement. Subscription in shares of the Fund may only be made pursuant to such documents and investors may not rely on information in this press release when making an investment.
The press release may not be distributed in USA or to any third party without the express permission of Venus Capital.