JM Financial Asset Management Ltd has raised Rs 700 crore ($74.1 million) in the first close of its pre-IPO fund, which will focus on businesses targeting a public listing within the next 18 months.
The fund has a target corpus of Rs 1500 crore ($159 million), along with a green shoe option of up to Rs 1000 crore ($106 million).
It has attracted commitments from a diverse mix of investors, including ultra-high-net-worth individuals (UHNIs), family offices and institutional investors, the firm said in a media statement.
This vehicle marks the Mumbai-headquartered financial services group JM Financial’s AIF division’s entry into the pre-IPO investment space. The fund is expected to start deploying soon.
“The commitments we received at first close underline investors’ growing confidence in backing companies with strong fundamentals in the pre-IPO stage,” said Vishal Kampani, Vice Chairman & Managing Director at JM Financial Ltd.
“Alternative investment funds have transformed into an important avenue for wealth creation, and the pre-IPO segment is emerging as one of the increasingly important trajectories,” he added.
The fund will use JM Financial Group’s investment banking, research and capital markets capabilities to identify and evaluate pre-IPO investment opportunities.
JM Financial has businesses across investment banking and capital markets, wealth and asset management, private credit and investments, and affordable housing finance. Its asset management arm has an AUM of Rs 14080.77 crore.
