Thakral Corporation’s wholly-owned subsidiary Paramount Investments is subscribing for unlisted units in the Riverwalk Fund II for an investment amount of INR425 million ($6.3 million).
The company will make a capital commitment of about INR420 million and directly subscribe for unlisted Class B units in the Riverwalk Fund II, an Indian domiciled fund which has been registered with the Securities and Exchange Board of India, and invest INR5 million in cash to acquire 10% interest in Riverwalk Investment Manager LLP, the sponsor and investment manager of the fund.
The funds will be used by Riverwalk Investment Manager to subscribe for unlisted Class E units in Fund II, thereby giving Paramount Investments an additional indirect interest in the first fund.
Alongside Paramount Investment, the co-investors of the Riverwalk Fund will be Karan Singh Thakral, and independent third parties unrelated to the Thakral family.
Riverwalk Fund invests in the securities of fast growing companies to create a highly-qualified diversified portfolio in B2B software solutions & services, fintech, consumer brand & consumer platforms, and application of technology to traditional industries like real estate among others.
The fund is close-ended with a tenure of eight years from the first closing which may be extended by the investment manager by up to two years with the prior consent of two-third majority of contributors.
Thakral says that India presents a compelling investment landscape driven by several factors including a growing working-age population, rising per capita income, fiscal discipline and favourable global trends such as the “China+1” strategy. The joining of Riverwalk’s fund allows the group a broader view of the market and opportunity to participate in these growth sectors.
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Shares in Thakral closed 5 cents lower or 3.70% down at $1.30 on July 7.
