Emkay Investment Managers Introduces New Category III Alternative Investment Fund

Emkay Investment Managers Limited has launched Emkay Emerging Stars Fund – Series VII, a SEBI-registered Category III alternative investment fund.  

The fund is close-ended in nature and has been structured with an investment horizon of 2 years and above. It will track the BSE 500 Total Return Index as its benchmark. 

Investment Mix and Allocation 

The fund will invest in a combination of listed equities and unlisted companies. Up to 35% of the corpus may be allocated to unlisted or pre-IPO investments, while the remaining portion will be invested in listed stocks across large-, mid- and small-cap segments.  

Allocation across sectors and market capitalisation will remain flexible within internal limits. 

Pre-IPO Investment Framework 

Unlisted investments will focus on late-stage companies that are close to entering public markets. These opportunities are expected to be identified around 6 to 9 months before IPO filings.  

According to the fund’s stated framework, targeted companies are expected to have established operations, earnings visibility and defined liquidity timelines, typically within six to eighteen months. 

Primary Market Environment 

India’s IPO market has expanded in recent years. The country accounted for 32.5% of global IPO volumes in 2025 year-to-date, compared with 5.8% in 2019.  

Increased domestic capital availability and higher retail participation have supported this growth. The fund intends to participate selectively in this segment through pre-listing investments rather than broad exposure. 

Investment Themes 

Portfolio construction will be guided by five broad themes: financialisation of savings, consumption growth, digitisation and artificial intelligence, manufacturing expansion, and energy transition.  

These themes show longer-term shifts linked to digital adoption, changes in consumption patterns, industrial activity and energy usage. 

Screening and Risk Controls 

Emkay will use its internal E-Qual Framework to assess potential investments. The framework evaluates governance standards, management capability, financial structure and disclosure practices. Companies with high leverage, weak governance or structural risks are expected to be filtered out during the selection process. 

Subscription and Redemption Terms 

The fund offers fortnightly subscription windows and quarterly redemption options. Exit loads have been set at 3% for redemptions within 24 months from the date of allotment against final drawdown, and 2% thereafter.  

The fund will be managed by Manish Sonthalia and Kashyap Javeri. 

Read More: Mutual Fund Share in Household Assets Jumps 125% in 10 Years, Rises from 4% in FY15 to 9% in FY25! 

Conclusion 

Emkay Emerging Stars Fund – Series VII expaxnds Emkay Investment Managers’ alternative investment offerings, combining listed equity exposure with limited participation in pre-IPO investments under a defined regulatory and operational structure. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.   
 
Mutual Fund Investments are subject to market risks, read all the related documents carefully before investing.