Holani Venture Capital Fund reported a significant Net Asset Value (NAV) of Rs 157.62 per unit as on November 30, 2024, underscoring its strong investment strategy and commitment to value creation. This huge growth reflects not only their well-balanced investment strategies but also their unwavering commitment to delivering sustainable returns and long-term growth to their investors.
Holani Venture Capital Fund, a Category I Alternative Investment Fund (AIF) with an initial corpus of Rs 300 crore and a voluntary addition of Rs 100 crore, is actively investing in SMEs. Over the past six months, the fund has diversified its portfolio with strong investments, early stage investments in unlisted companies, and significant participation in IPOs, allowing it to build a balanced portfolio in the developing Indian market. Focusing on the active SME Initial Public Offering (IPO) market in India, Holani Venture Capital Fund notes the growing trend of SMEs going public, driven by the growth potential and investment opportunities available to these companies.
The market benchmark Nifty50 closed the trading session at 24,141.95 on July 1, 2024, the month HVCF started operations of its AIF. On December 6, 2024, the Nifty 50 closed the trading day at 24,677.80 levels. This translates to a total profit of 2.22 percent over the entire period of existence of this business fund. At the same time, the benchmark representing the top 100 listed companies from Medium Enterprises – the Nify Midcap 100 – provided a return of 4.28 percent and that of the global small businesses – the Nify Smallcap 100 – provided a return of 4.83 percent.
Key factors driving the Fund’s growth
To build and sustain investor confidence, the Fund has focused on transparent communication and investor-centric strategies. This emphasis on keeping stakeholders informed and engaged increased the importance of stakeholders. For investors, beyond improved financial returns, the growth of HVCF means a more robust and adaptable investment approach.
Strategic Asset Allocation has been a key factor in the Fund’s success. A well-diversified portfolio has helped it capitalize on high growth opportunities. To maximize returns, approximately 52 percent of the Fund’s allocation was in the Heating, Ventilation and Air-Conditioning (HVAC) sector, which is currently experiencing rapid growth driven by urbanization and the growing demand for energy-efficient solutions.
Another important game changer for HVCF was its market positioning, careful analysis and timely decision making. This strategy was important to help the Fund cope with high market volatility to maximize returns in investment windows. Renewable energy, technology, manufacturing and logistics have been key components of HVCF’s portfolio, driving it to further sustainable development and innovation.
Future Strategy and Outlook:
Looking ahead, Holani Venture capital Fund is preparing to stay ahead of changing market trends and take advantage of new opportunities. Broad plans include expanding into Emerging Markets showing strong growth potential, Sustainability and ESG Focus to keep pace with global trends and meet investor expectations and using Technology to improve decision-making and improve investment performance.
Confirming the exceptional performance, Ashok Holani says “NAV’s strong performance is a stepping stone towards our continued journey of growth, innovation, and exceptional value delivery. We are confident that our proven strategy and experienced team will keep Holani Venture Capital Fund at the forefront of the industry, addressing challenges and seizing opportunities for the benefit of our investors.”
Disclaimer: Certain statements in this document that are not historical facts are forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties such as governmental actions, local, political or economic developments, technical risks, and many other factors that could cause actual results to differ materially from those contemplated by the relevant forward-looking statements. The Company shall not be liable in any way for any action taken based on such statements and undertakes no obligation to publicly update these forward-looking statements to reflect subsequent events or circumstances.
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