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Equitree launches USD 100 million AIF for small-caps

#Taxation & Finance News#India
Last Updated : 24th Apr, 2026
Synopsis

Equitree Capital Advisors has launched the Equitree Emerging Opportunities Fund, a Category III Alternative Investment Fund registered under IFSCA regulations within the GIFT City framework. The fund, structured as an open-ended restricted scheme, will provide USD-denominated access to listed Indian small-cap equities for non-resident investors, foreign nationals, family offices and institutions. The firm is targeting a fundraise of USD 100 million over the next 12 to 18 months. The launch reflects growing use of offshore investment structures based in GIFT City to channel global capital into Indian equity markets, particularly in segments such as small-cap stocks that offer higher growth potential.

Equitree Capital Advisors has launched the Equitree Emerging Opportunities Fund, a Category III Alternative Investment Fund (AIF) registered under the International Financial Services Centres Authority (IFSCA) framework at GIFT City, aimed at providing offshore access to Indian small-cap equities.


The fund, announced in the past week, is structured as an open-ended restricted scheme for non-retail investors. It is designed to offer USD-denominated investment exposure to listed Indian small-cap companies, targeting non-resident Indians, foreign nationals, family offices and institutional investors.

According to the company, the fund will operate as an offshore investment vehicle within the GIFT City ecosystem, enabling global investors to access Indian equity markets through a regulated international financial services platform. This structure is increasingly being utilised to channel foreign capital into domestic markets while offering regulatory and tax efficiencies associated with IFSC-based funds.

Equitree Capital Advisors stated that it is targeting a fundraise of USD 100 million over the next 12 to 18 months. The capital raised will be deployed into a portfolio of listed small-cap companies, which are typically characterised by higher growth potential but also carry relatively higher risk compared to large-cap stocks.

The launch reflects a broader trend of asset managers leveraging GIFT City as a base for offshore investment products. The IFSC framework allows fund managers to structure vehicles that cater to global investors seeking exposure to Indian assets without investing directly through domestic routes.

Equitree, a Mumbai-based boutique investment manager, currently manages assets worth over USD 140 million. The firm has been focusing on equity strategies, with particular emphasis on identifying emerging opportunities in under-researched segments of the market.

The introduction of the new fund is expected to expand its product offering and investor base, particularly among offshore investors looking for diversified exposure to India’s growth segments.

The development also highlights increasing interest in small-cap equities, which have seen growing participation from both domestic and foreign investors amid expectations of earnings growth and sectoral expansion.

By structuring the fund as a non-retail restricted scheme, the firm is targeting sophisticated investors capable of assessing the risks associated with small-cap investments. The open-ended structure allows for periodic inflows and redemptions, providing flexibility in capital deployment.

The launch of such funds within GIFT City underscores the evolving role of the IFSC as a hub for global capital flows into India, particularly in alternative investment structures that bridge domestic opportunities with international investor demand.

Source - PTI

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