INDIA HOUSING FUND. November 2017 India s Housing sector set for recovery backed by vision of the Prime Minister and landmark reforms

Transcription

1 INDIA HOUSING FUND November 2017 India s Housing sector set for recovery backed by vision of the Prime Minister and landmark reforms

2 OPPORTUNITY IN HOUSING SECTOR IN INDIA Urbanization and Housing Demand Government as a Catalyst Demand (PMAY 1 ) and Supply Side (80 IBA 2 ) Incentives Affordable housing: Win-win for All Stakeholders Distressed Opportunities 1 PMAY: Pradhan Mantri Awas yojana, plan announced by the government to boost housing demand 2 80 IBA: Section included in Income tax Act ( finance bill), to provide tax benefits to affordable housing projects 2

3 URBANIZATION TO DRIVE STRONG DEMAND FOR HOUSING Urbanization growth in India Urbanization is on the rise in India, but the country has a long way to go to match global benchmarks Urban towns (population greater than 1 mn) have seen an increase in their share from 23.0% to 29.7% over the last decade* Number of metropolitan cities (population greater than 1 mn) has risen sharply, from 35 to 53, during the last decade 33% 54% 56% Urbanization Percentage Globally 65% 74% 82% 86% 94% Source : Making The Dream of Millions A Reality Assessment of Affordable Housing in India (JLL, Oct 2016); World Bank; Census of India, 2011; CIA, 2015; World Urbanization Prospects (United Nations, 2014 Revision) * Mega cities (population of greater than 10 mn) include Greater Mumbai Urban Agglomeration (UA), Delhi UA and Kolkata UA Come a long way, but way to go 3

4 HOUSING FOR ALL MISSION NEEDS INVESTMENT OF MORE THAN USD 2 TRILLION IN 5 YEARS Segment Target Income Group % of Housing Need Typical Area (sq ft) Number of houses (Cr) Cost of House (INR lacs) Total Investment (INR Lakh Cr) Social Housing EWS (1 RK) 40% Up to LIG Housing LIG (1 BHK) 30% MIG Housing MIG (2-3 BHK) 20% High end and Luxury High or rich class (above 2-3 BHK) 10% Above Above Total Source : Funding the vision Housing for all by 2022 (KPMG, NAREDCO, 2014); Census of India, 2011; Report of the technical group on urban housing shortage ( ), Ministry of Housing and Urban Poverty Alleviation; Working Group on Rural Housing for XII Five Year Plan, Ministry of Rural Development 90% of housing need is in the Economically Weaker Segment (EWS), Low and Mid income groups (LIG and MIG) Total cumulative housing requirement in these three segments is around 4.14 Cr units till 2022 translating to ~ 1 Cr units per year Cumulative investment of over INR 139 Lakh Cr is required till 2022 to meet this target. This translates to annual investment in excess of INR 28 Lakh Cr 4

5 HOST OF INITIATIVES BY GOVERNMENT TO BOOST HOUSING Interest Subsidy of between 3%-6.5% on Housing Loans (under PMAY CLSS * ) Exemption from GST^ for Affordable Housing Housing for all by PM Narendra Modi 100% deduction in profit for Developers (u/s 80 IBA) Infrastructure status = Cheaper capital Easing of entry and exit norms for Foreign Direct Investment IMPACT ON REAL ESTATE Increased velocity Reduced project cost Easy access to pool of capital Digitization of Land Records Continuous reforms highlight government focus on affordable housing *CLSS Credit Linled Subsidy scheme ^GST : Goods and Service Tax 5

6 DEMAND SIDE INCENTIVE Prime Minister Housing Scheme (PMAY*) - Credit Linked Subsidy Scheme (CLSS) CLSS Scheme Type Eligibility Household Income (INR lakhs) Carpet Area-Max (sqm) Interest Subsidy (%) Subsidy calculated on a max loan of (INR lakhs) Maximum Subsidy (INR lakhs) EWS and LIG Upto % MIG 1 > 6 till % MIG 2 > 12 till % This incentive has provided a great push to buyers in this segment, where the subsidy can range from 15-30% of the cost of the house Total subsidy given under this scheme is INR 824 Cr as of July 13, 2017^ The main challenge for large section of population employed with unorganized sector has been lack of formal documents of identification, address and income. This is gradually being filled by introduction of Aadhar, linking of PAN with Aadhar and in-depth assessment of income cycle of the customer * PMAY : Pradhan Mantri Awas Yojana ^ Source : Economic Times CLSS provides substantial relief for LIG / MIG apartments 6

7 SUPPLY SIDE INCENTIVE Section 80 IBA Criteria Metro Cities* Non-Metro Cities Location Within a municipal limit or 25 KMs from Municipal limit Within the Jurisdiction of any Municipality or Cantonment board Total Area of Project Not Less than 1000 Square Meter Not Less than 2000 Square Meter Each Residential Unit (Carpet) Does not Exceed 30 Square Meters Does not Exceed 60 Square Meters Project utilize % Permissible of Floor Area Ratio Not Less than 90% Not Less than 80% Built-up Area of Shop or other commercial establishment Does not exceed 3% of aggregate built-up area Does not exceed 3% of aggregate built-up area * Metro cities here include Chennai, Delhi, Kolkata and Mumbai Tax exemptions provided on the supply side i.e developers to promote further launches in this segment (announced in Union Budget, Feb 2017) Government has kept size of 60 sqm outside the four Metro cities and applied the area limit on Carpet area basis instead of Built-up area. This shall help a number of projects to qualify under the provision Supply side incentives to encourage developers to increase launches in this segment 7

8 AFFORDABLE HOUSING: WIN-WIN FOR INVESTORS, DEVELOPERS & HOME BUYERS CONSUMERS Confidence in under construction projects Dispute resolution mechanism available CLSS to provide substantial relief to buyers LAND OWNER / DEVELOPERS Transparency and compliance to build credibility of developers Attract substantial amount of capital Demand side dynamics and government support to provide a viable business model Organized Real Estate sector poised to attract more investment in Housing GOVERNMENT Demand and supply side push to facilitate urbanization Fulfilling dream of own house for millions to create feeling of social justice Better risk adjusted returns Long lasting social impact on large population through investment in Affordable Housing sector INVESTORS 8

9 DISTRESSED OPPORTUNITIES CREATED BY DEMONETISATION, RERA AND GST Distressed Opportunities : The real estate industry has witnessed a year with several macro changes which will bring about an overall change in the way the industry functions. Demonetisation, GST and RERA have changed the industry from an unregulated to a regulated sector bringing about a paradigm shift in the functioning of business Developers will not be able to market a project without getting approvals and 70% of the project revenue will have to be kept in escrow to be utilized towards land and construction. This will increase the initial capital requirement GST and RERA have also increased governance requirements and need developers to be more accountable and follow robust processes There is a supply overhang in certain segments and certain micro markets because of which developers are under pressure with unsold inventory creating attractive investment opportunities The sector is expected to consolidate whereby smaller players are expected to join hands with bigger players to execute projects or completely sell out. This is expected to create attractive funding opportunities Attractive funding opportunities being created by regulatory changes and demand-supply disequilibrium 9

10 IIFL CREDENTIALS Fund Raising Credentials and Track Record Real Estate Track Record IIFL Group Synergies 10

11 IIFL S FUND RAISING CREDENTIALS: TRUST, TRANSPARENCY & TRACK RECORD IIFL has raised and managed over INR 25,000 Cr in diverse investment strategies across asset classes IIFL has raised more than INR 6,000 Cr in the last 5-6 years for Real Estate investments from investors in addition to proprietary investments IIFL has fully exited and returned monies for the first two funds raised in 2012 and 2013 to the tune of ~1,200 Cr at a Net Return of ~19.6% and 18.6% respectively A total of 74 investments over the last 7 years of which we have fully exited 47 investments. Across funds we have exited 10 investments of ~850 Cr over the last 6 months IIFL Real Estate team has combined experience of more than 100 years across various geographies pan-india 11

12 FULLY EXITED TWO FUNDS WITH GROSS MULTIPLE OF MORE THAN 1.5X Fully Exited Funds Average Fund Duration of 2.5 to 3 Years Fund Name Launch Year Amount Raised (INR Cr) No of RE Investments Fully Exited RE Investments Proven exit track record with industry leading returns Gross IRR (in INR terms) 1 Net IRR (in INR terms) 2 IIFL Real Estate Fund (Domestic) - Series % 15.9% IIFL Income Opportunities Fund % 16.9% TOTAL (A) 1,276 Existing Funds Fund Name IIFL Income Opportunities Fund Series - Special Situations Launch Year Amount Raised (INR Cr) No of RE Investments Fully Exited RE Investments Portfolio IRR % IIFL Real Estate Fund (Domestic) - Series , % IIFL Real Estate Fund (Domestic) - Series 3 (Class B) % IIFL Real Estate Fund (Domestic) - Series 3 (Class C) and RE PMS % IIFL Real Estate Fund (Domestic) - Series % IIFL Yield Enhancer Fund % TOTAL (B) 3,601 GRAND TOTAL (A+B) 4,879 1 IRR at fund level, gross of expenses 2 Net IRR post all fees and expenses 3 Portfolio IRR projected for full fund tenure, subject to contracted returns being received from all investments. All IRR/returns quoted on a pre tax basis 12

13 IIFL GROUP SYNERGIES ACROSS VALUE CHAIN IN HOUSING FINANCE Project Finance Construction & Project Completion Sale to Home Owners & Possession Availing of Home Loan IIFL AMC and IIFL Finance IIFL Finance and Housing Finance (HFC) Retail Distribution HFC IIFL Group has invested in over a 100 transactions over the last several years. We have developed skills for legal, technical and credit due diligence while completing the investments IIFL Finance and HFC provide finance for construction and working capital requirements of residential and commercial projects across various geographies IIFL Retail Distribution has strong network across India with 4mn customers across 1200 locations. We have also assisted clients in buying and selling of properties across several locations Total loan AUM of USD 3.4 billion retail loans with a fast growing mortgage finance book of INR 11,000 Cr. More than INR 450 Cr disbursed under PMAY-CLSS* scheme in last 2 years * Pradhan Mantri Awas Yojana Credit Linked Subsidy Scheme 13

14 PROPOSED FUND STRATEGY Project Selection Criteria Decision Making Process Representative Investment Pipeline Key Terms Taxation 14

15 PROJECT SELECTION CRITERIA Fund Allocation PMAY CLSS 80 IBA Mid-Income Housing Markets with high growth rates with basic amenities, physical and social infrastructure Distressed Investments Upto 30% Upto 50% Upto 50% Upto 30% NCR Focus on top Tier I & Tier II cities Reputed development partners with successful execution track record Prior experience in Affordable Housing segment Jaipur Ahmedabad Indore Lucknow Raipur Kolkata Project Sizes in the range of 5-15 lakh sq ft Mumbai Pune Hyderabad Average Unit sizes in the range of sq ft Chennai Bengaluru 15

16 SECURED INVESTMENT STRUCTURES WITH BUILT IN UPSIDE Debentures to create security and establish a base return with an upside Investment level return of 18-20% divided between annual cash flow return of 8-9% and upside sharing of around 12% Ring fencing the project with mortgage of land / development rights and escrow mechanism for project cash flows No land aggregation risk* REPRESENTATIVE INVESTMENT STRUCTURE Corporate / Personal guarantee of promoters No significant approval risk^ Representation on SPV Board for project monitoring and stepping in rights Individual deal tenure of 4-5 years * The Fund would invest in transactions where clear title land is already identified and part payment may be made directly to land owners/authorities for land/development rights ^ The Fund would not invest in projects where time consuming/exceptional approvals are pending to be received 16

17 DECISION MAKING PROCESS Investment opportunity identified by Investment Team Research includes: a. Investment merits b. Market dynamics DD Includes: a. Legal / Title Search b. Technical / Valuation Formal note created Investment idea is dropped Negative Fund Management team reviews the investment opportunity Positive Fund Management Team carries out detailed due diligence (DD) of the Investment DD Positive? Yes Positive review? Fund Management Team forwards recommendations to the Investment Committee No Additional covenants or enhancement suggested Investment team accordingly modifies the investment proposal Investment idea is dropped Investment team accordingly modifies the investment proposal Investment Committee votes on the Investment Proposal Investment Approved? Yes Investment Documents executed. Pre-Investment Audit done No Additional covenants or enhancement suggested Investment idea is dropped 17 Investment Made

18 REPRESENTATIVE INVESTMENT PIPELINE 1 Mid Income residential project in an established micro-market Location: Projects located in the city of Bangalore in a prime IT location Project Size: First phase of project size is around 25 lakh sq ft to be developed in phases with total number of apartments in the range of 2,000-2,500 Unit / Ticket size : Average unit sizes in the range of 700 to 1200 sq ft with average ticket sizes in the range of INR 50 to 75 lakhs Completion Timeline: Between 5-7 years Status at entry: Partial land acquired, master planning done 18

19 REPRESENTATIVE INVESTMENT PIPELINE 2 Mumbai based developer with local market expertise Mid-income housing project available at distress valuation Location: Project located in Dahisar, a western suburb of Mumbai Project Size: Approx. 5.5 lakh sq ft with around 900 units Unit / Ticket size : Average unit size of around 700 sq ft with average ticket size of around INR lakhs Completion Timeline: Between 5-6 years Status at entry: Rehab Construction underway 19

20 REPRESENTATIVE INVESTMENT PIPELINE 3 Leading Mumbai based developer Residential housing project with compact apartments qualifying for 80 IBA Location: Project located in the Western Suburb of Kandivali Project Size: Approx 5.5 lakh sq ft with around 1,000 units Unit / Ticket size : Average unit size of 320 sq ft with average ticket size of around INR lakh Completion Timeline: Between 4-5 years Status at entry: Initial approvals received. Site vacation in progress 20

21 KEY TERMS Target Fund Size Sponsor Commitment Fund Term Drawdown Tenure Initial Contribution Target Return (Gross IRR) Hurdle Rate NAV Frequency INR 2,500 Cr Up to INR 185 Cr (including Anchor Investor) 5 years from the date of final closing* and with possible extension of 1+1 year, subject to approval of two-thirds of the unit holders by value of their investment in the Fund Up to 24 months from the close of first drawdown 15% - 25% of the Commitment Amount 18-20% per annum in INR terms 14% per annum in INR terms (pre-tax, post-expense) Monthly (After Final Closing) * Final closing shall not occur later than 18 months from the date of Initial Closing Share Class Class A Class B Class C Class D Class E Class F Class G Minimum Commitment (INR Cr) Set-up Fee (Fund Incorporation) Upto 2.00% Upto 2.00% Upto 2.00% Upto 2.00% Upto 2.00% Nil Nil Management Expense ( charged on net capital contribution) 2.00% p.a. 1.75% p.a. 1.50% p.a. 1.25% p.a. 1.00% p.a. 0.75% p.a. 0.5% p.a. Performance Fee (over and above the Hurdle Rate with Catch-up) 20% 17.5% 15% 12.5% 10% 7.5% 5% 21 ^Share Class S is for subscription by Sponsor, Investment Manager, IIFL Group Companies, Associates, Shareholders of Group Companies and Employees of IIFL Group Co-investment opportunity is available at the discretion of the Investment Manager, as per terms of the PPM.

22 TAXATION The Fund is registered with Securities and Exchange Board of India ( SEBI ) as a Category II Alternative Investment Fund, in accordance with the SEBI (Alternative Investments Funds) Regulations, 2012 (the AIF Regulations ) As per the Finance Act, 2015, a so called tax pass-through status has been extended to Category II AIFs. Accordingly, the income of the Fund, other than that taxable under the head profits and gains from business or profession, should be taxable directly in the hands of Investors in the same manner as if it were the income accruing or arising to, or received by the Investor, had the investments by Fund been made directly by them. The Fund will be required to deduct tax at source in respect of income (other than business income ) that is paid to or credited to the account of the investors at a rate of 10% (plus applicable surcharge and education cess). The Fund would issue a consolidated statement to investors towards the same. Prospective Investors are urged to consult their own tax advisers in this regard and only rely on their advice. 22

23 INVESTMENT TEAM Experienced Real Estate Team Proposed Investment Committee 23

24 EXPERIENCED REAL ESTATE TEAM Balaji Raghavan CIO, Real Estate Investments and Fund Manager, India Housing Fund Balaji brings on board more than 20 years of experience in the Real Estate Finance and Banking industries. Since joining IIFL in 2010, he has led the real estate business, building an investment book of more than USD 1 bn with over 60 transactions. Balaji heads the domestic real estate funds and manages ~ 40 top developer relationship across the country. Prior to joining IIFL, he headed the mortgage finance business for ICICI Bank and he was a key contributor in ICICI s mortgage business growth and he successfully managed a ~ USD 12 bn portfolio across various parameters of distribution, risk and relationships in the industry. He was one of first few members of ICICI's consumer banking team when the bank started its retail business. Previously he had worked with ABN Amro Bank N V as a Regional Business Head. Abdeali Tambawala Partner, Real Estate Investments Abdeali has been part of IIFL since 2009 and has experience of 12 years across mortgages, construction finance, debt and equity syndication. His area of specialization includes sourcing real estate opportunities on the syndication and structuring side. He holds a Post Graduate Diploma In Management and his previous assignment was with Kotak Mahindra Bank where he advised clients and corporates on acquisitions and structured lending. As a part of the fund management team he has overseen multiple investments across Mumbai, NCR, Bengaluru and Pune with investments and exits exceeding ~ USD 500 million 24

25 FUND TEAM WITH COMBINED EXPERIENCE OF OVER 100 YEARS Investment & Fund Management Saurabh Gupta Saurabh brings on board more than 15 years of experience in real estate, banking and consulting. He has previously worked with Citigroup, ICICI Bank, Royal Dutch Shell and PricewaterhouseCoopers in India and the UK. He joined IIFL group in 2010 and has since been involved in over 30 Real Estate transactions with investments exceeding USD 200 million, and exits of ~USD 100 million across Mumbai, Chennai, Bengaluru and Jaipur. He holds an MBA from London Business School, UK. Vivek Mishra Vivek has over 10 years experience in various strategic divisions of leading companies. He started his career in the Indian operations of Unilever. He was then a part of ICICI Bank where he was the Zonal business head for Real Estate division, managing sales, risk, and underwriting. At IIFL, he is an active part of the investment team and he has overseen multiple investments across the country exceeding USD 500 million. He also plays a part in commercial sale, debt syndication and asset management. He holds an MBA from the Indian School of Business. Anurag Solanki Anurag brings on board over 17 years of exposure in Real Estate, Telecom & Banking services with names like GE Capital, Vodafone, ABN Amro Bank and Standard Chartered Bank in Direct, Corporate and Government Sales. Anurag heads Developer Funding for Northern India at IIFL and overseen investments across NCR, Jaipur, Chandigarh and Lucknow where he has overseen investments exceeding USD 300 million. Amit Jain Amit is a Chartered Accountant with 14 years experience in Risk and Asset Management. His previous assignments were with ICICI Bank,Reliance Capital Finance & Aditya Birla Finance his responsibilities included corporate and retail finance, taxation, company law, underwriting and syndication. He runs the risk management process - analysing, assessing & monitoring creditworthiness of real estate investment proposals based on various risk parameters and project feasibility. 25

26 EXPERIENCED INVESTMENT COMMITTEE TO PROTECT INVESTOR INTEREST Investment Committee R. Venkataraman Co-Promoter and Managing Director, IIFL Holdings Ltd. Mr. R. Venkataraman joined IIFL Holdings Board in He has contributed immensely in the establishment of various businesses and spearheading key initiatives of the group over the past 18 years. He previously held senior managerial positions in ICICI Limited, including ICICI Securities Limited, their investment banking joint venture with JP Morgan and Barclays BZW. He worked as an AVP with GE Capital Services India Limited in their private equity division. He has varied experience of more than 26 years in the financial services sector. He is a B.Tech from IIT, Kharagpur and an MBAfrom IIM, Bangalore. Amit Shah Co-Founder, IIFL Investment Managers & CEO, IIFL Asset Management Business Amit drives the firm s international footprint across offices in New York, Houston, London, Geneva, Mauritius, Dubai, Singapore and Hong Kong and active relationships across the global investor community. Having built Institutional & NRI HNI relationships globally for the group, the firm s assets under management today stands at over US$ 5 billion. Amit has more than 18 years of experience in the financial services industry, which include 11 years of advising global institutional investors. A passionate leader, he is responsible for building an ownership-driven team consisting of the best global talent. Earlier, Amit was associated with Kotak Mahindra Inc, New York, Citi Group s Wealth Management business and IDBI bank in various leadership roles. Amit was recognized with the NRI of the Year Award 2016, for Asia Pacific Region. Amit is a Chartered Financial Analyst (CFA) from ICFAI and holds a Bachelor s degree in Commerce. Prashasta Seth CIO, IIFL Asset Management Ltd. Prashasta is responsible for all the equity funds managed by IIFL Asset Management. He joined the firm in 2008 and has been instrumental in setting up and growing the equity desk. Prashasta has over 16 years of experience in the financial services industry. He has been managing and advising pooled assets and investor portfolios. He specialises in developing investment strategies, generating stock ideas and creating actionable research reports. In his earlier roles, he worked for J.P. Morgan, London and headed Irevna - a Standard & Poor s company. He holds a Postgraduate Diploma in Business Management from the Indian Institute of Management (IIM) Ahmedabad and a Bachelor s of Technology degree from the Indian Institute of Technology (IIT) Kanpur. 26

27 ABOUT IIFL IIFL Group Key lines of Business 27

28 IIFL GROUP One of India s fastest growing financial services groups IIFL Holdings (IIFL:IN): offering a full service platform for Institutional, Private Wealth and Retail clients IIFL Investment Managers Group includes Equity Broking, Institutional Equities, Private Wealth, Investment Banking, Credit and Insurance Key investors in the Group: - Fairfax: Prem Watsa's Fairfax Group holds 35.5% - General Atlantic: invested $173mn in IIFL Wealth for 21.6% equity (EV $780mn) - CDC: sovereign fund owned by UK government acquired 15% in IIFL Finance (EV $ 950mn) Fastest Growing Wealth Management Company in India Employee Owned 19.4% of the company is owned by employees Over 1,33,000 Crs Assets Under Advice, Distribution and Custody The Capital Code Proposition, Platform, People and Processes Motto Ownership Mindset and Alignment of Interests * As on Sept 30, Offices across 8 countries and 15 Indian cities 28

29 IIFL INVESTMENT MANAGERS Institutional investors of repute (Fairfax, GA) lend significant expertise Distribution, Advisory and Asset Management are established businesses, account for 95% of total assets Lending is a newer business; significant growth visibility in the immediate future Promoters 29% 35.5% IIFL Holdings Employees Others 35.5% 57.2% 22.95% 19.85% Distribution Advisory and Succession Planning Asset Management Lending AUM ~ INR 80,000 crs largest private wealth management AUM) Broking, Distribution Customized Discretionary strategies AUM ~ INR 35,000 crs Advisory Services Wealth Structuring Succession Planning Corporate and Family Structuring AUM INR 23,000 crs Mutual Funds and AIFs Loan Book ~INR 5,000 crs Loan Against Securities Margin Funding Loan Against Property IPO Financing Shareholding pattern of IIFL Holdings and IIFL Investment Managers is as at Sept 30,

30 RISKS & DISCLAIMER Key Risks Disclaimer 30

31 KEY RISKS Real Estate Sector Risks: Various aspects such as construction risks, safety risks, zoning risks, permit risks, changes in tax laws and accounting standards, lending regulations, government policies related to Real Estate Sector, environment laws, health and safety laws, government land acquisition, acts of terrorism and acts of nature may negatively impact returns of the fund. Real Estate sector with long gestation periods has experienced considerable fluctuations and cycles in the past. While the target segment of affordable housing is quite resilient, a broad based deceleration in economic growth will lead to difficulties in sale of units in investee projects. Unemployment, inflation and reduction in credit availability or rise of interest rates in particular will significantly reduce demand for units in cities like NCR, Mumbai and Bangalore. Investment Primarily in Illiquid Securities: Despite underlying investments being listed or to be listed fixed income instruments, the liquidity in these instruments may be thin. These investments may be difficult to value, sell or otherwise liquidate and the risk of investing in such securities is greater than the risk of investing in more frequently traded securities. Credit Risk: If any of the investee companies defaults in meeting its obligations towards the Fund, investment returns from the fund will be negatively impacted. Legal and Regulatory Risks: The Fund may have difficulty enforcing contractual obligations or judgments against Indian companies. Regulatory investment restrictions applicable to the Fund may impede its ability to invest in certain instruments limiting its ability to generate adequate returns or cash flows. Local Laws, Political and Economic Risks: Real Estate activities in India are subject to local municipal and state regulations and taxes in addition to central regulations and taxes. Any adverse changes in same or local economic conditions or political stability may have adverse impact due to nature of affordable housing developments. Currency: Investment in Unhedged Share Class are subject to USDINR exchange rate fluctuations. Developments in Global financial markets in addition to developments in Indian financial markets, economic and fiscal conditions may impact currency movement. Liquidity: The Fund is close-ended and organized primarily for long-term investors, and is not intended to be a trading vehicle. 31

32 DISCLAIMER The purpose of this presentation is to provide general information to prospective investors in a manner to assist them in making investment decision. It does not purport to contain all the information that the prospective investor may require. The presentation is made for informational purposes only and should not be regarded as an official opinion of any kind or a recommendation. It does not constitute an offer, solicitation or an invitation to the public in general to invest in the AIF. This presentation is intended for the use of prospective investors only to whom it is addressed and who is willing and eligible to invest in AIF. The information contained in this presentation is obtained from sources believed to be reliable. We do not represent that any information, including any third party information, is accurate or complete and it should not be relied upon without proper investigation on the part of the investor/s. IIFL Wealth Management Limited (IIFLW) or any of its director/s or employees does not assure/give guarantee for any accuracy of any of the facts/interpretations in this document, and shall not be liable to any person including the beneficiary for any claim or demand for damages or otherwise in relation to this opinion or its contents. This presentation is qualified in its entirety by the Information Memorandum/PPM and other related documents, copies of which will be provided to prospective investors. All investors must read the detailed Private Placement Memorandum (PPM) including the Risk Factors and consult their tax advisors, before making any investment decision/contribution to AIF. Capitalized terms used herein shall have the meaning assigned to such terms in the PPM and other documents. NOTE: IIFL Wealth Management Limited (IIFLW) is Co-sponsor of the Scheme. IIFL Wealth Management Limited (IIFW) is holding company of Investment Manager/Trustee Company of the Scheme and Co-Sponsor to the Scheme which may receive distribution or any other fees in this connection. Further, IIFLW and its group, associate and subsidiary companies are engaged in providing various financial services and for the said services (including the service for acquiring and sourcing the units of the fund) may earn fees or remuneration in form of arranger fees, referral fees, advisory fees, management fees, trustee fees, Commission, brokerage, transaction charges, underwriting charges, issue management fees and other fees. The contributors should note that the Scheme is neither approved or recommended by SEBI nor does SEBI certify the accuracy or adequacy of the PPM of the Scheme. 32

33 THANK YOU.