Avendus India Fund II, ranked no. 1 in the midcap funds category since inception: Morning Star

5th September 2013 | Mumbai | Investment Banking

The fund outperforms the BSE Small cap and India OE Small and Midcap mutual funds by 28.2% and 12.8% respectively since inception

Avendus PE Investment Advisors Ltd., a subsidiary of Avendus Capital, which focuses on private investment in public enterprises (PIPE), has released its performance analysis data as on June 30th 2013. As per Morningstar, the leading independent investment analysis firm, Avendus Fund II, has given annualized returns of 8.8% since inception for the period January 2011 to June 30th 2013. In comparison, BSE small cap funds and India OE Small and Midcap mutual funds have given a return of -19.4% and -4.1% respectively. Avendus Fund II has also been ranked as the leader among 70 midcap funds.

Manoj Thakur, CEO, Avendus PE Investment Advisors, said, “The investing objective of the fund was to deliver returns for its investors through long term investing in listed small and midcap companies, which are identified using a rigorous private equity evaluation approach. The fund has delivered robust returns in spite of the prevailing unpredictable environment, proving the merit of the evaluation style and investment strategy. “

The fund invests in fundamentally strong under researched midcap companies (market cap < US$ 1 billion), using the private equity evaluation approach which entails an in-depth primary research, multiple management meetings, thorough commercial diligence including several customer feedback and reference checks on management with emphasis on active engagement with investee companies.

The Fund typically takes equity stakes of less than 5% through both primary and secondary investments. While being sector agnostic the fund has a preference for sectors which benefit from India’s rising consumer discretionary spend, rural prosperity and rapid urbanization. It selectively invests in companies undergoing special situations like corporate restructuring, entry into new business, step jump in profit margins etc.

About Avendus Capital

Avendus Capital is a leading financial services firm which provides customised solutions in the areas of financial advisory, equity capital markets, alternative asset management and wealth management. The firm relies on its extensive track record, in-depth domain understanding and knowledge of the economic and regulatory environment, to offer research based solutions to its clients that include institutional investors, corporations and high net worth individuals/families. In recent years, Avendus Capital has consistently been ranked among the leading corporate finance advisors in India and has emerged as the advisor of choice for cross-border M&A deals, having closed around 38 cross-border transactions in the past 5 years. Avendus Securities through its Institutional Equities practice is able to offer high quality research-driven advice to help its clients take investment decisions. Avendus PE Investment Advisors manages funds raised from its investors by investing in public markets, while Avendus Wealth Management caters to investment advisory and portfolio management needs of Family offices and Ultra High Networth Individuals / families, spanning all asset classes. Headquartered in Mumbai, the firm has offices in New Delhi and Bangalore.

Avendus Capital, Inc (US) and Avendus Capital (UK) Pvt. Ltd. located in New York and London respectively are wholly owned subsidiaries offering M&A and Private Equity syndication services to clients in the respective regions.

For more information, please visit www.avendus.com

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