Exhilway Global will invest US $2 billion in the emerging economies of India, Africa and Indonesia. The focus will be on backing the investment opportunities in asset heavy companies, mining and real estate.
Exhilway Global, the world's largest emerging markets private equity fund is gearing up to raise USD $2 billion under its three major private equity funds lined up for launch this year, focusing exclusively on the emerging markets. The fund management will be outsourced to a leading asset management company and Exhilway will stick itself to the role of finalizing right companies and strategies for the fund.
Exhilway known for its successful emerging markets strategies is set to invest a major chunk of USD $2 billion in India, followed by investments in Africa and Indonesia. For India, Exhilway is focusing on investing in the asset backed viable business models and real estate opportunities.
Initially, Exhilway will raise and invest US $1 billion under its flagship private equity fund called Exhilway Global Opportunities Fund (EGO) - I focusing on investing in the asset backed companies, providing investors a complete capital protection, a minimum debt return and a potential to make unlimited returns on the equity upside.
The minimum investment required by an accredited investor to participate in the EGO - I is kept at only US $50,000 as compared to millions in other equally capable US based private equity funds. The tenure too is kept at 5 years as compared to the industry average of 7-10 years.
The USP of capital protection and minimum debt returns is attracting lot of investor interest for the fund.
"The EGO fund unlike other private equity funds will be a visible pool. The investors can gain in depth knowledge of the portfolio companies before investing. We took almost a year to finalize the right set of companies. We are now nearing launch and we are sure the investors will love to invest in this hybrid PE opportunity which is completely safe and a fixed income generator for the investors with an assurance that they will see growth," said Joy Ghosh, Director India Operations.
Exhilway who raised US $200 million for its mine and minerals fund in November last year, is planning to raise another US $500 million for the mines acquisition opportunities in Latin America.
Under the real estate segment, Exhilway is planning to invest US $350 million in India based opportunities located in NCR, Uttar Pradesh, Mumbai and Pune. The real estate fund will also focus on opportunities in Indonesia. The planned real estate fund will a target net return of 100-125% in the tenure of 5 years. The real estate fund will be managed by Arvind Jaiswal, the renowned Mumbai based chartered accountant who is fund manager to the US $200 million mines and minerals fund.
"Exhilway is focusing on the emerging market opportunities, such opportunities should form 30-40% of an investors portfolio. The growth opportunities are tremendous, backed by GDP growth of the emerging nations. Say for India, it is no longer regarded as a poor exotic place, everybody in US or other developed nations are aware that India is growing at a rapid pace, competing with China in manufacturing capabilities. The infrastructure has improved a lot and a country with 50% youth aged less than 30 years is bound to grow," said Rahul Kumar, Exhilway India Country Head.
Exhilway is also investing big time in debt crowdfunding. Exhilway Link will invite small and medium sized companies to raise funds directly from the accredited investors under the JOBS Act Rule 506(C). Exhilway will outsource the task of general solicitation to effectively manage the legalities of the newly born rules.
The platform is scheduled to be live in mid March when the JOBS Act is properly implemented by the law makers.
Exhilway has begun finalizing private placement agents to raise investments from the investors based in US, UK, Gulf, Australia and Japan. Exhilway is looking out to appoint sole lead private placement agent instead of appointing many different countries.