New Delhi, May 14 -- Arthsetu Asset Management, a New Delhi-based investment management firm, has started raising its maiden alternative investment fund focused on special situations and distressed assets opportunities, VCCircle has learnt.
The fund, registered as a Category II vehicle with the Securities and Exchange Board of India, will invest across sectors and has a target corpus of Rs 500 crore ($52.2 million) with a greenshoe option of an equal amount.
The firm expects the fund's limited partner base to include high-net-worth individuals (HNIs), family offices, corporate houses and institutional investors. The sponsor commitment stands at 2.5%.
Arthsetu is led by partners Manish Agarwal, Prashant Bharti and Chetna Agarwal. Manish has experience across asset reconstruction, corporate valuation, and wealth management. Chetna is a corporate recovery and asset valuation expert with over two decades of experience. Bharti is a former tech executive with a background at Microsoft and Oracle, and manages Arthsetu's operational and regulatory infrastructure.
The fund will have a tenure of seven years, with an option to extend it by two years. It will chase opportunities involving distressed assets, restructuring situations and companies facing temporary challenges.
The fund will maintain a diversified portfolio and follow a risk-first approach with an emphasis on capital preservation and governance standards. The risk-first approach will prioritize downside protection, legal and financial due diligence, and diversified portfolio construction.
Arthsetu says its investment strategy will combine macroeconomic research, fundamental analysis and risk management. The firm plans to deploy capital through a structured investment process involving opportunity identification, due diligence, investment structuring, active monitoring and planned exits.
Published by HT Digital Content Services with permission from VC Circle.