SBI Funds Management is preparing to launch its first technology-focused alternative investment fund (AIF) aimed at backing private companies, Bloomberg reported.
The move marks the asset manager’s entry into the technology-focused private markets space as it seeks to ramp up its alternatives platform.
The proposed fund is expected to have a corpus of about $200 million and will be co-sponsored by venture capital firm 3one4 Capital Management, the report added.
The fund is awaiting regulatory approval from the Indian capital markets regulator, the Securities and Exchange Board of India (SEBI), before it can be launched.
SBI Funds Management is not the only traditional asset manager looking to expand its footprint in India’s alternatives market.
Others such as ICICI Prudential Asset Management and Axis Asset Management too ramped up their alternatives businesses alongside their mutual fund operations.
The alternative investment fund industry currently stands at $175 billion, driven by demand from ultra-high-net-worth investors betting big on higher-yielding assets.
3one4 Capital, headquartered in Bengaluru, backs early-stage startups and is currently on the road to raise its fifth fund targeting a total corpus of $225 million.
It recently made headlines when it closed a new $15-million fund with backing from the UK’s development finance institution, British International Investment (BII), to invest in what it describes as “underrepresented founders”, including women entrepreneurs and founders from Tier-II and Tier-III cities.
