Cheraman Fund has been formed with the aim of launching and managing a series of alternative investment schemes to invest in and harvest business growth opportunities created by the strong economic prospects of the Indian economy. Cheraman Fund got registration from SEBI as Alternative Investment Fund to carry out private equity investment activities with a corpus of 250 crores. The Fund primarily targets to invest in Kerala to provide much needed impetus to the service and manufacturing sectors of the State.
Cheraman Premium Fund I is the first scheme of the fund which will make investments primarily in unlisted companies that are at the intersection of high growth. It targets to source proprietary investment opportunities, especially from emerging, high growth companies and expects to be a strategic partner to the entrepreneur and the enterprise to help expand businesses beyond their existing roots, professionalize their operations and enhance their management team. The private equity is attractive for new companies with limited operating history that are too small to raise capital in the public markets and have not reached the point where they are able to secure a bank loan or complete a debt offering.
The Fund is sector agnostic, however the preferred sectors are Healthcare and allied Services, Food Processing, Alternative building materials, Education, Food Services, Hospitality, IT/ITES, Logistics Sector and Water and Clean Technologies. The Fund will be Shariah compliant and will not invest in stocks of the companies whose business activity is conventional financing, insurance companies, securities trading companies, entertainment including film production companies, cinema, cable TV, music etc., explosives, alcoholic beverages like wine and liquor, tobacco and its related products, pork and non- Halal food producing companies.
Cheraman Funds Management Limited shall act as the investment manager to the Fund. The investment team and the Board of Directors of Cheraman Funds Management Limited have a strong track record of entrepreneurship in India and abroad. In addition, venture partners of Cheraman Premium Fund I bring a strong ecosystem of relationships, rich operating experience and industry insights.