Exhilway Global Opportunities Fund Gears Up For $1 Bn Fund Raising

Online, September 19, 2013 (Newswire.com) - Exhilway Global Opportunities Fund, a US based diversified opportunity based private equity fund, is gearing up for the mega fund launch. The fund will initially invest $156 million into the identified Indian companies which carries a potential to grow several folds, if nurtured well.

As per the fund strategy, 60% of the fund will be invested into the US based companies and rest of the 40% will be diverted into the investment opportunities worldwide, primarily India, Africa, Indonesia and China.

The company will start identifying investment opportunities in US from 25th September, followed by other international opportunities, except India from October 9, 2013. The companies will be shortlisted on the basis of well crafted business plan, project grading, enterprise valuation and due diligence, all prepared by third party documentation agencies for a fee.

As per the Exhilway's insider who requested anonymity, said, "Exhilway is focusing to invest 40% of the fund in India, Africa, Indonesia and China. The fund will have a portion of both debt and equity. In a layman's language, an investor in the Exhilway Global Opportunities Fund will earn a fixed return of 15% per annum and an opportunity to participate in the equity growth of the investee companies".

The fund will be headed by Franklin Murphy along with the two managing directors and one chief financial officer, who will be announced soon.

Exhilway officials will meet India's new Reserve Bank of India (RBI) governor, Raghuram Rajan, to discuss the future of investing in India. Against dollar, rupee depreciated 20% this year, the sudden recovery in rupee after the appointment of new RBI governor seems to be temporary. Inflation and growth are the two major risk factors to the Indian economy and government is silent on how it will curbed in the coming days. The general elections in 2014, will also decide the corporate growth in India.

"India is an interesting investment horizon, if you dig deep into the corporate world, they have may have scarcity of funds but not the talent. When we entered in India, we was bullish on the government's decision to revamp small and emerging businesses (SME) sector and setting up of a SME stock exchange to get companies listed without much formalities, giving easy exits to the private equity investors. But even after one year, nothing has happened. The government has stopped focusing on the emerging businesses, and we took it as a business opportunity to build a fund which will have a portion of fixed income (debt) for our investors in US and unlimited upside potential of equity growth. We intent to take such brilliant entrepreneurs to the US, we will help them set up businesses and we will provide them capital," said Murphy in an reply to the email questionnaire by Bloomberg.

Exhilway Global Opportunities Fund will have a minimum ticket size of $50,000 with fixed income assurance of 12% per annum, however if an investor invests $1,00,000 he will receive 15% fixed annual return. Exhilway Global Opportunities fund allows investor to earn unlimited upside potential via equity shares of the investee companies. As per the Exhilway management, the fund will be kept open for subscription in early October. The fund will charge a management fee of 1% per year and 20% sharing after hurdle rate of 25% per annum.

The fund will be open for subscription in US, Canada, Gulf, UK, Japan & Australia.

Newman Asset has assigned "AAA" grading to the fund.