NextBillion - An Initiative of the William Davidson Institute at the University of Michigan

Monday, January 18, 2016

IFMR Investment Managers Pvt Ltd, a Chennai-based asset management company, is raising a Rs.250 crore (about $38 million) debt fund to invest in businesses that target consumers at the bottom half of the pyramid, such as firms that finance affordable housing or agri-business.

The fund has already garnered Rs.165 crore from six institutional investors, including Birla Sun Life Insurance and Kotak Mahindra Old Mutual Life Insurance. Fund-raising is expected to be completed in March.

Called the IFMR FImpact Long Term Multi Asset Class Fund, it is registered with the Securities and Exchange Board of India (Sebi) as a so-called category II alternative investment fund (AIF). Sebi categorizes AIFs under different categories. Debt funds are categorized under category II.

This is the second fund from IFMR, which in 2014 created a Rs.100 crore fund to lend exclusively to the microfinance sector. It has so far made eight investments.