GUWAHATI: Paradise Moon Private Limited has launched its first alternative investment fund (AIF), Paradise Moon Investment Fund, with the aim of providing investors with a unique investment opportunity that taps into the growing potential of the Indian stock market and capitalise on the dynamic landscape of Small and Medium Enterprises (SMEs) Initial Public Offerings (IPOs).
The fund aims to raise Rs 750 crore by the end of the fiscal 2028, targeting investors looking at the SME market growth. The minimum investment for participation is Rs 1 crore, making it accessible primarily to high-net-worth individuals and institutional investors.
Launching the AIF, Naveen Bansal, Managing Director, Paradise Moon, said: “We seek to invite investment in Category 1 Alternative Investment Fund (AIF), with the visionary goal of becoming a leading investor in SME (pre & post) IPOs. The SME sector has witnessed notable expansion and development over the decades, contributing to a third of the Gross Domestic Product (GDP). With the significant contributions to the country’s socio-economic growth and creating employment opportunities, SMEs hold immense potential in supporting India’s ambitious vision of a USD 40 trillion economy by 2047.”
Micro and small enterprises play an essential role in the economy, creating around 120 million jobs across all industries.
New-age entrepreneurial firms that require large financing during their initial days can approach a Venture Capital Fund (VCF) which can help them overcome financial crunch. These funds invest in startups with high growth prospects. HNIs investing in VCFs adopt a high-risk, high-return strategy while allocating resources.
Talking about the impressive returns that SME garners, Bansal said: “The BSE SME Index has delivered annualised gains of up to 195% over the past decade. Rs 1,000 investment in September 2013 would be worth Rs 1.03 lakh in 2023, a 100x return.”
Ski Capital Services Limited is the Registrar and Transferer, while Mitcoin Credentia Trusteeship Services Limited. is the Trustee. Nuvama Custodial Services Limited is the Custodian and Fund Accountant of this AIF fund.
