Emkay Investment Managers Limited to distribute 15% of outstanding units of its maiden AIF Series
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Investors to receive pay-outs of INR 68 crore in the first phase of distribution.
EIML, the asset management arm of Emkay Global Financial Services Ltd has today announced the distribution of proceeds from Emkay Emerging Stars Fund – Series 1,2 and 3 to the existing unit holders, making it one of the few pioneering funds to do this. The distribution will be to the tune of 15% of the outstanding units at the current NAV, which is 25% - 27% of the invested capital. In this first phase of distribution, investors stand to receive approximately INR 68 crore. The fund is currently in the last year, and the asset management company will continue distributing funds to the investors over the next 9-12 months, thereby bringing the process to a successful closure.
Emkay Emerging Stars Fund is an award-winning fund, having bagged the award from the prestigious PMS AIF World for best post-COVID AIF performance across all categories, basis 6 month absolute returns. Post March 2020 in particular, the fund bounced-back very strongly and as on today the fund’s returns are significantly higher than the benchmark returns and also above the hurdle rate of 10% IRR (15%+).
Commenting on the development, Mr. Vikaas M Sachdeva, CEO, EIML said “The continuous focus on high quality managements has led to a consistently performing portfolio, thereby enabling us to undertake distribution of proceeds like these. We will also be giving an option to investors to use the proceeds to subscribe to our latest series of Emkay Emerging Stars Fund (series IV), which is open till April 30, 2022.”
Mr. Krishna Kumar Karwa, MD, Emkay Global Financial Services Limited and Mentor-EIML said, “As we enter the last leg of our fund period, as a prudent practice we plan to distribute at periodic intervals the funds generated from the portfolio holdings that we will be exiting during the year. The move is a part of broader strategy to reward our investors, as wealth creation and client success are at the core of Emkay’s values.
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