Carnelian AMC plans $250 mn offshore fund from GIFT City, says founder Khemani

Carnelian Asset Management and Advisors plans to float a $250 million offshore fund from GIFT City in Gujarat to tap offshore clients who are keen to invest and ride on India’s exponential growth during the transformative period of  Amritkaal, its founder Vikas Khemani has said.

This offshore fund —to be called India Amritkaal Fund—will have similar strategies and construct to this boutique investment management firm’s recent ‘Carnelian Bharat Amritkaal Fund’, which was rolled out in mid March targeting a fund raise of ₹5,000 crore from domestic HNIs, Ultra HNIs and family offices, Khemani told BusinessLine in an interview.

“We have already started our office in GIFT City. We are raising an offshore fund, likely to be $250 million. We have got the approval. It will be launched in two days,” Khemani said.

Khemani said that Carnelian Bharat Amritkaal Fund —a long-only Category III Alternative Investment Fund —has already received a commitment of over ₹ 500 crore. This fund focuses on high-growth companies poised to benefit from key “mega trends” across sectors such as Banking, Financial Services and Insurance (BFSI), manufacturing, consumption, services exports and infrastructure. It will have a carefully selected portfolio comprising 25-30 stocks.

Khemani highlighted that over the next decade Indian stock market will see huge investor interest from both within the country and outside as well. 

“India today is a very long term opportunity. Today our corporate profits are $150 billion. In year 2000, they were $8 billion. This profit of $150 billion will become $ 1 trillion by 2035.  Our market capitalisation will become $18-20 trillion and Nifty will become almost 1 lakh”, he said, referring to the growth potential of the Indian market.

India is a broad-based opportunity, and as the country evolves, a greater number of companies will come into the market, Khemani said.

He expressed confidence that Carnelian will grow faster than the industry. Khemani sees  Bharat AmritKaal Fund as the biggest growth driver for the investment management firm in the coming days.

When asked if Carnelian, which was established in 2019 and currently manages assets worth ₹6,000 crore, plans to launch a small-cap or a mid-cap fund, he replied in the negative. 

“Wherever we see opportunity, we will do it. But right now, the focus is on Bharat Amrit Kaal Fund. In the next 8-12 months, we don’t want to be distracted by anything else,” he said.

Khemani also foresees a lot of foreign money coming into Indian markets after the general elections, as many foreigners will be sitting on the sidelines.