Kubera Cross-Border Fund (KUBC) aims to achieve high returns through capital investments in cross-border businesses, whilst adhering to the following investment policies and guidelines.
Target CompaniesInvestee companies will have strong management teams and at least USD 10 million in annual revenues (post-acquisition if the investment is intended to facilitate future acquisitions). The investee company will have a proven performance track record or demonstrate the potential for good short to medium-term growth.
Geographic FocusInvestments are primarily in companies or assets located in India and in the US. Investments can also be appropriated to target US companies that use low cost domiciles other than India such as China or the Philippines, and also companies that serve other attractive developed markets. The geographic mix of investments may vary over time if suitable opportunities arise and are deemed appropriate for this Company.
Type of InvestmentsInvestments will be funded by way of cash. Ordinary shares of the Company will not be used as consideration for any investments.
Number of InvestmentsThe Investment Manager expects to actively manage a concentrated portfolio of approximately six to 12 investments when fully invested, in order to reduce the risk profile of the Company whilst aiming for high returns.
Investment SizeThe size of each investment will range between USD 20 million and USD 70 million, although initial investments may be smaller if follow-on investments are anticipated. Initial investments will not exceed 20% of the Company's Net Asset Value (NAV) (calculated at the time of the investment). Generally, the Company expects to take a minimum stake of 10% in each investee company.
Control of Investee CompaniesThe Company aims to secure a control position in an investee company, solely or as part of an investment consortium. In cases where the Company holds a minority interest, the Investment Manager will seek to secure minority protection rights. The Investment Manager will expect to be on the Board of all investee companies.
BorrowingsThe Company may borrow up to 20% of NAV of the Company (calculated at the time of borrowing) for investment or short-term funding purposes. The Company may also use overdraft and other short-term borrowings to facilitate short-term working capital needs such as expenses or fees payable by the Company.
Realisation of InvestmentsThe Company aims to realise investments when deemed appropriate by the Investment Manager in line with the investment objectives. Investments are expected to be held for two to five years on average although the Investment Manager has the discretion to hold investments with strong growth prospects beyond this time horizon.
Investment TimelineAt least half of the placing proceeds are expected to be invested within 12 months following admission to the Alternative Investment Market of the London Stock Exchange. The Company intends to be fully invested within 18 months from the date of admission, subject to funds reserved for potential follow-on investments and future management fees.