Artha Global Opportunities Fund Becomes First Foreign Distressed debt fund to Relocate from Mauritius to GIFT City
Aims to Achieve $1 Billion AUM in 3 Years
Artha Global Opportunities Fund, a Mauritius headquartered and SEBI-registered fund investing in distressed assets and special situations in India has become the first Foreign Portfolio Investor (FPI) to move its domicile from Mauritius to GIFT City, Gandhinagar in response to PM Modi's ambition to make GIFT city a world class international financial services centre (IFSC).
Sachin Sawrikar
"Our Radiant Capital Global Opportunities Incorporated VCC Sub Fund 1, launched under the Variable Capital Company (VCC) structure in Mauritius in 2023, has become the first SEBI-registered Category I foreign portfolio investor specialising in distressed assets; to relocate to GIFT City," said Sachin Sawrikar, Founder & Managing Partner, Artha Bharat Investment Managers IFSC LLP. "This relocation of the funds permanent establishment aligns with Prime Minister Modi's vision to establish GIFT City as a global financial hub."
As part of the transfer of domicile, Radiant Capital Global Opportunities VCC Sub Fund 1 will merge into a newly established, IFSC-registered entity named the Artha Global Opportunities Fund. This special situations/distressed debt fund, is awaiting lenders' No Objection Certificates (NOCs) to finalize the transition. The fund, with a planned lifespan of 7 years, invests in Security Receipts (SRs) issued by Asset Reconstruction Companies (ARCs) in India. Artha Bharat carefully selects SRs representing non-performing loans that are backed by operational assets to ensure that the fund realises returns for investors within its fund life.
"Our Artha Global Opportunities Fund is on track to deliver over 5x returns on invested capital to unitholders, showcasing our ability to achieve exceptional results," added Sawrikar.
The Fund is managed by Artha Bharat Investment Managers IFSC LLP, promoted by Sachin Sawrikar, a private equity industry veteran and former SBI Mutual Fund equity fund manager.
In order to give further heft to PM Modi's vision for GIFT city, Artha Bharat also plans to make it's IFSC operations, a base for its growth plans to launch 3 new funds. This will help grow its Assets Under Management (AUM) from INR 1,100 crore to $1 billion within the next three years. The funds will be marketed to Non-Resident Indians (NRIs) living overseas and also to Ultra High Net Worth Individuals (UHNIs) in India, seeking global diversification.
"As a pioneer in GIFT city, the new funds we plan to launch will further diversify our portfolio and meet the evolving needs of global investors."
Strategic New Fund Launches in 2025
Building on its strong track record, Artha Bharat plans to introduce three innovative funds in 2025:
1. Hedge Fund (US Retail Sector): This fund targets alpha generation of 3%-5% above market returns quarterly by taking long/short positions in the US retail sector.
2. Global Arbitrage Fund: Designed for stable, low-risk US$ returns of 8%-10% annually by employing arbitrage strategies.
3. Fixed Maturity Plan (FMP): Targeting 9%-10% annual returns in USD over a 3-4 year horizon. This fund is structured for predictable income.
Benefits of GIFT City Relocation
Artha Bharat believes that moving their permanent establishment from Mauritius to GIFT City will bring multiple benefits. According to Sawrikar, the regulator in GIFT City is highly approachable and business-friendly. "While the regulations initially followed a domestic model that involved micromanagement, they have evolved into a more conducive framework for an IFSC. This flexibility has made it easier for us to navigate the regulatory environment and focus on our growth," he added.
Artha Bharat expects that having a nearshore presence in the Gandhinagar IFSC will help them attract a larger pool of talent in India for their operations as compared to what is available in a smaller nation such as Mauritius. "Unlike foreign portfolio investors (FPIs) based in other jurisdictions, we now have a physical presence in India with a dedicated team. This local presence helps us access a strong talent pool and provides valuable insights into the Indian market. We believe this will significantly enhance the fund's performance going forward," said Sawrikar.
About Artha Bharat
Artha Bharat Investment Managers IFSC LLP (an associate firm of Radiant Capital) is licensed by International Financial Services Centres Authority, Gift City as a Fund Management Entity. It's the manager of the US $132.5 million (Rs 1,100 crore) special situations/distressed assets Artha Global Opportunities Fund. The firm has been promoted by Sachin Sawrikar, an MBA from XLRI Jamshedpur and Chartered Financial Analyst from CFA Institute USA. Sawrikar who also holds a Masters in Real estate Investments and Finance from Henley Business School has over 29 years of experience in fund management in India and global markets.
