Blue Lotus Capital (BLC) has launched its 3rd offshore fund – India Emerging Giants Fund (IEGF) – a PIPE strategy fund focusing on midcap companies in India. BLC, which has AUM of $240 million as of Dec’2020, has a presence across USA, UAE, and Singapore. This new fund comes after a successful closing of its multi-asset global arbitrage fund last year.
IEGF would be investing in emerging companies in the technology, manufacturing, and consumer businesses. As per Harikrishnan S, Managing Partner of BLC “India offers better investment opportunity compared to other emerging markets in the coming years“. He adds “India is one of the few large countries in the world that has been able to successfully manage the Covid-19 crisis and the economy is seeing a V-shaped recovery”.
Harikrishnan points out that India growth story is well known to global investors for the last 2 decades but this time two things are different: first, bold and strong structural reforms to formalize the economy, and second, the changing nature of the global supply chain with everyone searching for an alternative to China. India would be a big beneficiary of this global shift with new initiatives like the Production Linked Incentive (PLI) schemes that encourage companies to augment capacity to capture emerging opportunities.
This new fund launch is coming in the backdrop of $23 billion invested by Foreign Portfolio Investors (FPIs) in India in 2020. Another $4 billion has been invested by FPIs to date this year. As per the International Monetary Fund (IMF), the Indian economy is expected to grow at ~11.5% in FY22, which is the highest amongst emerging market economies.