The joint venture is aimed towards promoting the Fund to Royal Investment Bank’s regional network of active investors.
Ralph Kruger, Senior Fund Manager at Arcstone Capital, said that improving market visibility for the Passage To India Fund in the Middle East is a key strategic initiative for the purpose of placing additional assets under management into the Fund. “For the overwhelming majority of small to medium hedge funds, successfully placing long-term Middle Eastern assets under management has always been a challenge. Arcstone Capital has therefore decided to take advantage of an established investment marketing & capital raising framework that is both DIFC-licensed and DFSA-regulated. With this agreement, we can focus on our core business of providing value to our investors while Royal Investment Bank can undertake the day-to-day fund marketing activities.”
Lars Pampel, Director of Investor Relations (Alternative Investments) at Royal Investment Bank Limited, said that Arcstone Capital’s investment offering was a good fit for the Bank’s portfolio of funds, as the Passage To India Fund provided investors with a unique opportunity to tap into a previously ignored aspect of the large Indian economy. “We were particularly impressed with the Fund’s management strategy and philosophy, which has so far resulted in a three year annualized return in excess of 28%. This is merely one reason why we are proud to add the Passage To India Fund to our portfolio of funds that we will be presenting to our active investor network in the Middle East.”
The Fund’s investment objective is to produce long-term investment gains in excess of the Indian indices by selectively investing in mainly small to midsized, under-researched Indian companies that focus predominantly on India’s large domestic market. These informational inefficiencies offer measurable discounts in valuations and produce attractive investment opportunities for knowledgeable investors with a three year or greater horizon.
Royal Investment Bank Limited (RIBL) is an investment advisory firm based in the Dubai International Financial Centre (DIFC) and regulated by the Dubai Financial Services Authority (DFSA). RIBL specialises in advising clients – in the Gulf region and across the globe – on credit related transactions such as the trading and monetisation of financial instruments and arranging loan instruments such as Letters of Credits to facilitate trade for Clients. RIBL is an experienced market leader in the advisory and arranging business, and has strong relationships with leading international financial institutions and investment advisors.
Arcstone Capital is a fund management firm based in Mauritius. The firm’s main fund – The Passage To India Opportunity Fund (Cayman) Limited – is an open-end fund incorporated in the Cayman Islands. The Fund seeks long-term positive absolute returns through a combination of primarily long-term and occasional short-term investments. The Fund may invest in a variety of Indian instruments emphasising long-term investments in small and mid-sized listed companies. At present, the Fund has in excess of US$125 million under management in various discrete investment strategies.
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