The fund has two parallel tranches – India Asset Growth Fund (IAGF) pooling capital from Indian on shore investors and Essel Credit Opportunities Growth Fund (ECOG) managed from Singapore for global investors.
India Asset Growth Fund (IAGF)
IAGF is a unique high yield, fixed income fund backed by real-estate mortgage backed securities.
Annuities in Senior Secured Estate Transactions 1 (ASSET 1) is the first series launched by the fund to securitize receivables from premium, brown-field residential and infrastructure projects in key metros of India.
The fund employs an opportunistic yet defensive strategy capitalizing on four factors - India's relative economic stability & large incremental capacity for credit expansion; large demand-supply gap in housing units in India's top-tier cities; tighter lending constraints from banks and Indian property developers seeking alternative debt providers with steady private equity exits from Indian real estate.
Essel Credit Opportunities Growth Fund (ECOG)
ECOG is our proposed offshore fund which will mirror the local IAGF portfolio to allow seamless domestic and global participation.
The fund is targeted at global investors seeking fixed, periodic returns with least volatility and mark to market risk through structured asset-backed investments.
As part of our two fund structure, IAGF, our domestic tranche,suggests ECOG to subscribe to senior, secured, rated & listed high yield bonds backed by receivables and un-sold inventory of self-liquidating brown-field residential real estate assets. Our offshore fund manager and independent international Investment Committee evaluate these bond investments with respect to the investment mandate and other stipulated guidelines. Additionally, the fund overlays forex hedging allowing investors to opt for currency hedged dollar denominated returns.
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