JM Financial AMC's Pre-IPO Fund raises more than Rs 700 crore at first close
Management also said roadshows are under way for a second performing-credit fund.
JM Financial AMC raised more than Rs 700 crore at the first close of its Pre-IPO Fund, and expects a final close in the next few months.
Management also said roadshows are under way for a second performing-credit fund. The first performing-credit fund is fully drawn down and on the way to full deployment.
JM Financial AMC has built multiple manufactured products, including mutual-fund schemes, credit products and alternative investment funds, known as AIFs.
It plans to add a specialised investment fund, or SIF, platform early next year. The company did not disclose a launch date, target assets or revenue target for the SIF business.
Management wants three asset-management revenue streams, alternatives, SIFs and mutual funds, each with its own break-even timeline, rather than judging the platform by mutual funds alone.
The systematic investment plan, or SIP, book fell sequentially to Rs 87 crore from Rs 90 crore, and asset-management assets under management were broadly flat. Management said mutual funds would take longer to break even, partly because of challenging market conditions, while alternatives could break even reasonably quickly.
That is management’s expectation, not a financial forecast, as the company did not disclose revenue, cost or profit targets for either business. It has indicated 15% to 20% growth for the asset-management business, which is guidance rather than a reported result.
Management said it expects to announce the Pre-IPO Fund’s first investment shortly. It also plans additional credit strategies under the AIF platform. No target fundraising amount has been given for the second credit fund.
Management linked the alternatives push to its internal distribution. In the wealth business, recurring revenue grew almost 20% year on year and assets rose almost 17%. Recurring wealth assets stood at Rs 37,000 crore.
The company said it would consider its own Gujarat International Finance Tec-City, or GIFT City, entity only after stabilising its current platforms and launching SIFs.
