Alternative Investment Fund (AIF)

Making Renewable Energy Accessible

This is a unique opportunity to invest in India’s first Renewable Energy AIF with target 15% Equity IRR
to investors (pre-tax) over 10 years and have an impact in accelerating deployment of solar assets across
commercial and industrial sectors.

TIME FRAME & FEES

  • Fund length of 10 + 2 years
  • Investment period of 60 months from Final Close
  • 2% Management Fee
  • 20% Carry (with catch- up) with an IRR Hurdle of 12%

FUND SIZE & MINIMUMS

  • First close is 18 months from launch with minimum size: ₹20Cr; Final Close is 36 months from launch with target size: ₹50Cr. There is Green-shoe option of an additional ₹20Cr
  • Minimum investment is ₹1Cr to participate

TARGET RETURNS

  • All opportunities evaluated to deliver an unleveraged Project IRR > 16%
  • We also plan to leverage the portfolio for an overall Project IRR > 19%

INVESTMENT OPPORTUNITY

We utilize our expertise, network, and technology to filter through the noise.

Transforming the energy landscape calls for a multi-faceted approach to unlocking capital. We do that by resolving barriers and creating the ideal conditions for investments. We provide our Investors a hassle-free approach to invest in renewable energy projects. Given the market dynamics and cost of solar, this is an ideal time to tap into the opportunity of solar asset investing for the masses.

Healthy Return Potential

The AIF has been structured to provide annualized equity returns greater than 15%. The hurdle rate has been set to 12%

Tangible Asset Ownership

Our hard assets will give you another layer of reassurance. We also use insurance, contracts and other risk mitigation mechanisms to secure the investment

Experienced Team

Our team draws on a wide and deep range of experience not only in the energy sector, but also as investors across various emerging markets

Why Renewable Energy AIF?

Renewable energy offers a non-cyclical investment opportunity that doesn’t have the ups and
downs of the economic cycles.

It offers an annuity style return to diversify your portfolio.

Infrastructure Manager – Distributed Energy

Distributed Energy is a venture-backed development and aggregation platform that connects renewable projects with funders. They will be the Infrastructure Manager for this fund.
  As the Infrastructure Manager they have experience with Commercial and Industrial Solar. They will prioritise the deployment of this fund above any other.

TERMS OF INVESTMENT

Parameter Terms
Minimum Participation INR 1 Crore (Including under Joint Names) / ±USD 140,000
Timeline Launch: Jul 02, 2021; First Close: Jan 01, 2023; Final Close: Jul 01, 2024
Initial Investment Period 60 months from the date of Final Close
Instrument Units in Hamsa Solar Fund I
Fund size First close and minimum size is INR 20Cr. Our target size is INR 50Cr
Fund Tenure 10+2 years
Fee Structure 2% Management fee; 20% Carried interest past Hurdle rate of 12% XIRR p.a. (includes catch up of pre-hurdle)
Indicative IRR Target 15% Equity IRR for investor (pre-tax) over 10 years. All opportunities evaluated to deliver an unleveraged Project IRR > 16%
Fund Auditor Shah Jain & Co LLP (Proposed)
Fund Trustee Amicorp Trustees (India) Pvt Ltd
Investment Manager Hamsa Asset Management Pvt Ltd
Reinvestment Policy Exit proceeds if any reinvested for 5 years following Final Close
Cash Distribution Policy Beginning 3 years after the Final Close. All net proceeds related to returns and surplus will be distributed pro-rata to Investors in order: Capital, Hurdle rate, Carried interest, Surplus. Distribution subject to Investment Manager discretion.
NAV Policy Proposed to be reported half-yearly subject to regulatory requirements

 

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