Alchemy Capital Management has introduced its third Long Term Ventures Fund, a Category III Alternative Investment Fund (AIF) aimed at supporting India’s growing listed and private companies.
This closed-ended fund has a four-year horizon and requires a minimum investment of ₹1 crore. It will focus on high-growth small-cap
and mid-cycle companies in emerging sectors such as artificial intelligence (AI), defense, and green mobility. The fund will be managed by Hiren Ved, following a “Growth at Reasonable Prices” strategy.
Fund Structure and Strategy
The Alchemy Long Term Ventures Fund, Series 3, is set up as a closed-ended Category III AIF. This structure allows the fund to pursue complex investment strategies and invest in less liquid assets.
It has a fixed four-year life, which can be extended by one year if needed, aiming to create significant value over the medium term.
The fund uses a unique capital commitment system, requiring investors to contribute their investment in four equal tranches. This approach gives both the fund manager and investors strategic flexibility in managing capital.
Investment Focus and Target Sectors
The fund seeks “quality companies well-positioned to benefit from India’s structural growth.” Its focus is on emerging, high-potential sectors including data centers, AI, defense manufacturing, green mobility solutions, semiconductors,
and advanced healthcare and biotechnology. By being sector-agnostic, the fund casts a wide net to capture the most promising opportunities across industries.
Management and Investment Philosophy
Hiren Ved, co-founder, director, and chief investment officer of Alchemy Capital Management, will lead the fund.
The investment approach follows Alchemy’s “Growth at Reasonable Prices” (GARP) philosophy, which aims to select growth companies that are reasonably valued to generate sustainable long-term returns.
Ved emphasized that the fund aims to empower entrepreneurs building next-generation businesses by providing them with essential growth risk capital.
