October 20, 2022
The recently overhauled overseas investment regime has thrown open newer avenues for global fundraising. Indian fund managers often grappled with challenges of pooling offshore capital. On one hand, offshore investors didn’t want to pool into India owing to Indian tax registrations and their general discomfort with Indian regulations. On the other hand, Indian fund managers had trouble setting up offshore India focused funds due to round tripping issues. Those who did setup, had to engage in some bit of structuring, which wasn’t always very comforting. The new investment regime corrects course for a large part of this and we explore some of these changes.
We also discuss India’s attempt at presenting to the world the new offshore fund jurisdiction, at least for India focused funds – the GIFT City. GIFT gets a shot in the arm with relaxations on profitability track record and a carte blanche given to Indian individuals to invest into GIFT-based AIFs.
Net-net, will we now see the Indian fund manager take the global centre-stage? In our latest piece published on the BQ Prime, we analyse this, the new opportunities and challenges for GPs, and set out a few balancing solutions which should elevate and cement their positions.
We regularly write on Fund Formation, PE, PIPE and M&A, Structured Finance, Fund Litigation, Governance and Stewardship. Stay tuned.