NISM Series XIX-C case studies
NISM Series XIX-C · Put your knowledge to work in context.
NISM Series XIX-C is the Alternative Investment Fund Managers Certification Examination offered by the National Institute of Securities Markets (NISM), the public trust established in 2006 by the Securities and Exchange Board of India (SEBI). NISM describes itself as carrying out capacity building activities aimed at enhancing quality standards in the securities markets. The NISM Series XIX-C case studies are 5 cases and about 3,614 words.
1Kaveri Opportunities: Choosing a category when strategy mixes yield options and revolving borrowing
Promoter group Kaveri Capital Partners plans the 'Kaveri Opportunities Fund', an INR 60 crore scheme to buy unlisted equity in mid-market manufacturers. The draft term sheet also proposes (i) writing covered call options on the Nifty 50 to add 2–3% annual yield, (ii) borrowing up to 15% of the scheme's investable funds on a revolving basis to close deals faster, and (iii) onboarding 1,200 investors at the INR 1 crore minimum.
745 words, about 4 min2Sahyadri Credit: continuing interest, performance fee and an anchor investor's side deal
Sahyadri Credit Opportunities is a Category II AIF proposing an INR 80 crore debt fund; the first close is INR 40 crore from four investors. The manager intends to commit INR 1.2 crore as its continuing interest, made up of INR 0.8 crore of first-year management fee it will forgo and INR 0.4 crore in cash.
738 words, about 4 min3Northbridge Special Situations: an affiliate valuer, a down round and a large redemption
Northbridge Special Situations Fund is a Category III AIF with a corpus of INR 400 crore and a stated policy of declaring NAV monthly. Twenty-two percent of its assets are unlisted convertible debentures of a logistics company.
732 words, about 4 min4Deccan Yield: temporary borrowing that became leverage, plus a total return swap
Deccan Yield Fund, a Category II AIF with an INR 250 crore corpus, invests in performing corporate credit. In FY2024 it did the following: borrowed INR 45 crore for 45 days to fund a large follow-on purchase, repaid it, and repeated this on five occasions, booking INR 6.8 crore of interest cost; entered a total return swap referencing a basket of listed NBFC bonds to add 1.5x exposure for six months; and borrowed INR 20 crore to fund the purchase of a distressed loan portfolio from a bank, using the portfolio's cash flows to repay over three months.
702 words, about 4 min5Bharat Growth: a 25 lakh 'retail route', assured returns and a hidden placement fee
Zenith Wealth Advisors is placing a Category II AIF, the 'Bharat Growth Fund', with its mass-affluent clients. A senior relationship manager has scripted a pitch: 'SEBI's new AIF norms allow retail participation from INR 25 lakh, returns of 12% are assured because the fund invests only in secured debentures, and the promoter group provides a buyback after four years.' He has signed 180 clients at INR 25 lakh each, including 22 employees of the manager's sister company and a group of six family members who pooled INR 4 crore into one application of INR 1 crore in the name of the eldest member.
697 words, about 3 min