The fund will invest predominantly in listed micro- and small-cap companies with market capitalisation below ₹2,000 crore, targeting businesses at an early stage of growth.
According to the asset manager, the fund is a closed-ended Category III AIF with a tenure of six years from the first close, extendable by up to two years in accordance with the Securities and Exchange Board of India (SEBI) AIF Regulations, 2012. The minimum investment amount is ₹1 crore.
TrustLine said the fund follows a concentrated investment strategy focused on under-researched and under-owned companies in the lower end of the small-cap segment. The investment approach is based on identifying companies with financial metrics such as high return on capital employed (ROCE), strong operating margins, low leverage and consistent operating performance.
Commenting on the fundraise, ArunaGiri N, Founder, Chief Executive Officer and Chief Investment Officer at TrustLine Holdings, said more than 90% of the commitments came from existing investors, while the entire corpus was raised through direct investments without using distribution channels.
Founded in 2004 and headquartered in Chennai, TrustLine is an equity research and asset management firm with a focus on micro-, small- and mid-cap companies. The firm manages discretionary portfolios and alternative investment funds.
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