Samana Global Fund (SGF) is an active and diversified investment approach confirming with principles of Shariah and complying with Securities and Exchange Board of India (SEBI) and Alternative Investment Fund (AIF) Category II Regulations. The fund was launched in December 2018 and is a scheme derived with the support of three entities, Samana Global Business Solutions Ltd (Sponsor), IBMC (Investment Manager), and VISTRA (Trustee). SGF 2020 is the first scheme of the Fund which will cater to the seven verticals of Hospitality, Healthcare, Live Farm, Academy, Realty Services, Retail, Information Technology (IT) The Scheme will target Investments which will generate superior returns and will target a minimum IRR of 14% (fourteen percent) per annum net of taxation and management fees.
The Samana Global Fund launched in December 2018 is an investment in India with the support of three entities. The fund is sponsored by Samana Global Business Solutions Ltd with Investment Manager IBMC and trustee VISTRA. Samana Global Fund 2020 is the first ever fund that will cater seven verticals which include Hospitality, Healthcare, Live Farm, Academy,Realty Services, Retail and IT.
The Scheme will target minimum Capital Commitments of Rs. 1,00,00,000 (Rupees One Crore) and a maximum size of Rs. 100,00,00,000 (Rupees One Hundred Crore) per investor. The target size of the Scheme is Rs. 4000 Crores. The Scheme shall have its Initial Closing after the registration of the Fund as a Category II AIF with SEBI, and the Scheme having received Total Capital Commitments of not less than Rs. 400 Crores (Rupees Four Hundred Crores). The Scheme shall target the Initial Closing within 12 (Twelve) months of receiving the certificate of registration of the Fund from the SEBI or such later date as may be decided by the Investment Manager. The Final Closing shall occur no later than 18 (Eighteen) months after the date of the Initial Closing. The investment period will be a maximum period of 5 (Five) years from the date of the Initial Closing. The Scheme will have an initial life of 7 (Seven) years, extendable by up to 2 (two) years with the approval of two-third of the Contributors of the Scheme by value, and will target a minimum internal rate of return ("IRR") of 14% (fourteen percent) per annum net of taxation and management fees.
Governance: The Trustee has been set up as a private limited company on December 19, 1995 under the provisions of the Companies Act, 1956, and has been appointed as the trustee of the Fund under the Indenture. The registered office of the Trustee is presently located at Mumbai, India. The Trustee has appointed IBMC Investment Managers & Advisors LLP, as the investment manager of the Fund under an investment management agreement dated April 20, 2018 ("Investment Management Agreement") to manage the investments of the Fund. The Investment Manager will seek to leverage on the expertise of the Sponsor, a highly experienced management team, a strong deal pipeline and significant investment opportunities. The Investment Manager will establish the Investment Committee to make decisions in relation to investments and dispositions. Please refer to Chapter 04 (Governance) for more details on the governance structure of the Fund.
Sponsor Commitment: The Sponsor, will commit to invest at least Rs. 5,00,00,000 (Rupees Five Crores) or 2.5% (Two Point Five Percent) of the Total Capital Commitments of the Scheme, whichever is lower. The Sponsor shall make such commitment at Initial Closing and shall make its contributions to the Scheme pro-rata to the contributions made by the other Contributors in accordance with the Drawdown Notices issued from time to time.
Investment Policy: The Fund proposes to pursue an active and diversified investment approach in conformity with the principles of Shariah, and in compliance with the AIF Regulations. The Fund will operate within the framework that is permitted for a Category II AIF under the AIF Regulations and to provide superior, consistent, risk-adjusted returns to its Contributors.
Under the Scheme, investments will be made in equity and equity-related instruments of investee companies in, inter alia, the following verticals:
The Investment Manager may invest in additional/other verticals based upon the recommendations of Investment Committee.
The Investment Manager proposes to follow an intensive research process for screening potential investments. The Investment Manager believes in investing in quality investment opportunities that are easy to understand, have in place a professional and qualified management team with a clear vision and focus on business in which it has strengths.
Investing in Indian Economy
India, the fastest growing economy, accounting for about 15 % of global economic growth (IMF; 2018) is the key location that SGF aims to invest in. Soon to become the 5th largest economy in the world by nominal GDP India stands as a strong investment point with its constant urbanisation policies and opportunities, strong regulatory framework and simple and transparent foreign direct investment (FDI) policies. With a number of noteworthy policies implemented in the recent years, like the Goods and Services Tax (GST), India's economy is gaining momentum, according to IMF reports of 2018. The verticals chosen by SGF replicate the Indian economy in terms of having a brighter future and growth.
An Alternative Investment Fund (AIF) under Securities and Exchange Board of India (SEBI)