Motilal Oswal Asset Management Launches India Zen Fund

Motilal Oswal Asset Management Company (MOAMC) has launched an offshore hedge fund through its Mauritius-based investment management company.

The long-only-bottoms-up fund, called India Zen Fund, hopes to raise $100 million by December 2015. The fund will specialize in investing in Indian mid-cap securities with a private equity-style diligence approach, the company said in a statement.

“Currently we are selectively looking only to raise the initial seed monies from certain large global asset allocators based out of US and Europe and are already in discussions with a few investor groups,” said Ankit Bengani, Head – International Business, Motilal Oswal Asset Management. “The fund is targeted towards global institutional investors like pension funds, endowments, family offices that are looking for steady returns over a longer period of time.”

The company says it will make investments in firms with market cap levels ranging between $100 million and $3.5 billion. The fund also plans to build a concentrated portfolio that holds  a maximum 20 stocks with a buy-and-hold strategy.

MOAMC, the investment manager to Motilal Oswal Mutual Fund, was founded in November 2008. It is a fully-owned subsidiary of Motilal Oswal Securities Ltd.

The company’s total assets under management (AUM) sits at more than $900 million, as on March 31, 2015.

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