Exhilway Positive on India Even After US $20 Million Hedging Loss
Exhilway Global Opportunities Fund L.P. will suffer US $20 million hedging loss on its proposed investments in India. The company which is only investing into asset backed AA or AAA rated companies remains bullish on India.
New York (I-Newswire) August 21, 2013 - Exhilway Global Opportunities Fund (EGOF) L.P., a US based US $1 billion private equity fund will suffer US $20 million hedging loss before it makes investments in India this year. EGOF in November last year finalized investments into fifty companies in India, across various business sectors like information technology, retail and manufacturing. The portfolio of the companies include professionally managed start ups to to the established companies.
The source on the the basis of anonymity said "EGOF is bullish on India and will separate a contingency reserve of US $30 million for India. Rupee is not expected to stabilize anytime sooner, and the Indian economy will face many issues when the general elections knock the doors in 2014".
EGOF has structured a unique asset backed hybrid product for India, which will have a portion of both debt and equity. The investments will only be made into AA or AAA rated companies. The capital protection is a unique feature of the product along with an unlimited upside return potential. The tenure of the product which is kept at five years has opted for exit on the London based AIM via private placement of shares or strategic buyout by some other PE fund at a later date, the listing of the companies in early 2014 and the investee companies will build market capitalization . The investor is secured of receiving his money in full along with a risk free return of 20% per annum along with bonuses, if any. Exhilway will also back the investment of the investor with its own equity to cover all possible impacts of derailing Indian economy.
"We are considering how we can share our hedging loss with the investee companies. The idea is that Exhilway will bear the losses upfront and will slowly pass the booked losses to the companies, not in terms of cash, but in terms of equity", said Joy Ghosh, Business Head India Operations. Adding to the comments, Rahul Sahay, Director of Investments at Exhilway India said "The fund manager for the Indian operations will be from India. Monica Kujawa, who is the fund manager for the international investments will not head the Indian investments,".
EGOF will invest into Indian companies initially, the date of launch which was earlier scheduled for August may be postponed to late September as Exhilway will arrange for funds and will prepare technical papers for hedging.
EGOF which will invest US $200 million in India this year has received pre-launch investment commitments worth US $51.1 million, which denotes 26% of the fund size.
About Exhilway Wealth
Exhilway Wealth is the world's sixth largest wealth management company with assets more than US $4.5 More.. billion under management.
Exhilway Wealth is operational in over 46 countries worldwide with annual trading turnover of US $4 trillion per year. Exhilway Wealth employs over 14,000 people worldwide.Less..
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Published On:August 21, 2013
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