They are said to be raising about $100-200 million each initially under an AIF structure, a move that should help bring global capital building local infrastructure, sources familiar with the matter told ET.
True Beacon is awaiting regulatory approval for setting up shop in Gujarat International Finance Tech (GIFT) city with a new launch of funds that is expected to deploy money in Nifty 50 stocks primarily. The approval from IFSC is expected early April.
“GIFT City provides an attractive avenue to invest into India, for both individual and institutional investors,” said Co-founder and CEO True Beacon, Richard Pattle. “The establishment of a branch office and a fund for overseas investors is an exciting new chapter for True Beacon. We hope to play our part in attracting foreign capital to the country.”
The Bangalore-based asset manager is seeking to accelerate the company’s expansion with the launch of a new fund for overseas investors into India.
“Funds are showing interest to set up shop after the Budget offered select sops,” said Dipesh Shah, head development at IFSC Authority, the regulator for the special economic zone.
“We are continuously trying to onshore the offshore deals, which may be taking place in global centres like Mauritius, Singapore, Hong Kong,” he said.
Finance Minister Nirmala Sitharaman offered a select “tax holiday” for overseas funds, setting up a base in GIFT City.
New funds set up in IFSC will be able to issue equivalent units to foreign investors in the offshore entity. The government also provided exemption on capital gain arising from relocation of funds to IFSC apart from tax exemption to shareholders and unit-holders for any gains that may arise on account of exchange of units.
“We have already set up our fund administration trustee and advisory services in the Gift city,” said Aditya Sesh, MD and founder of Basiz fund services, a Mumbai-based firm. “We are now in the process of setting up an AIF platform in GIFT city, which will invite other fund managers with multi-asset perspective. This will invite funds of different flavours under the AIF platform.”
Kedaara did not reply to ET’s email.
Tax amendment package of offering a tax neutral transfer of investments to IFSC Alternative Investment Fund (AIF) structure from offshore funds along with a few other provisions are aimed at incentivizing the “re-domiciliation” of India focused offshore funds to IFSC AIFs.
For example, True Beacon is likely to make it flexible for its investor clients, which can shift to IFSC from Mauritius base.
