A former top investment manager at Goldman Sachs plans to raise £100m on London’s stock market to invest in companies focused on India.
Ashoka India Equity Investment Trust today announced its intention to launch its initial public offering on London’s main market, with a view to eventually investing in between 20 and 40 stocks.
The investment managers will take no management fees, but will take a performance fee paid in shares based on “out-performance of the portfolio over the benchmark over a medium-term period”.
The trust was founded by Prashant Khemka after 17 years at Goldman Sachs Asset Management. Khemka managed $5bn (£3.7bn) as chief investment officer of the GS India Equity for a decade and an emerging market fund from 2013 until March 2017.
The trust will follow a “high-conviction” approach, and will be “benchmark agnostic”, focusing on Indian-listed companies as well as other firms with significant Indian focus, according to the announcement.
The Indian economy is expected to continue a surge in growth in the coming years, with the International Monetary Fund projecting an expansion of 7.4 per cent in 2018 – a rate of growth which would double the size of the economy within a decade.
Andrew Watkins, who will chairman the trust, said: “The investment manager believes that India presents a compelling investment opportunity, combining consistent economic growth with attractive demographics and a stable regulatory and legal framework.”
Peel Hunt will be sole sponsor, placing agent and intermediaries offer adviser to the firm.