Alchemy launches Rs 500 crore AIF fund focused on mid and smallcaps

Alchemy Capital on Tuesday announced the launch of a new CAT III AIF scheme, ‘Alchemy Emerging Leaders of Tomorrow’, focused on small and midcap companies. With a portfolio of 20-25 stocks that will be sector agnostic, the fund comes with a tenure of four years and is targeting a corpus of at least Rs 500 crore.

“India is on the cusp of a solid economic recovery led by manufacturing and digital-led businesses. While investors have already played the consolidation story of backing current leaders, our endeavour for Alchemy Emerging Leaders of Tomorrow is to bet on new entrepreneurs with much more agile and innovative business models and have a hunger for quality growth,” said Alchemy CEO and Co-founder Hiren Ved.

Ved will be managing the fund along with Mythili Balakrishnan.


“We believe that India is entering a phase of broad-based growth and the small and midcap space in India offers an opportunity to make attractive returns. Also, the small and mid-sized businesses have undergone multiple stressors over the past few years but have emerged stronger and are well placed to take advantage of the current demand environment,” she said.

The fund’s portfolio will also include investments in largecaps and about 10 per cent in IPO opportunities or any other instruments. The fund managers will aim to generate long-term capital appreciation by identifying high-quality companies with strong growth prospects benefitting from themes such as India’s rising discretionary spending, digitalization, global outsourcing, import substitution, and improving manufacturing competitiveness and investment, with a minimum investment of Rs 1 crore.

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