Eligibility Criteria

  • Any Daughter Fund which is registered in India and abides with relevant rules and regulations including the SEBI (Alternative Investment Funds) Regulations, 2012 (as Category I and II AIFs) and is set up to achieve the Fund objectives will be eligible for support from the Fund;
  • The Daughter Funds supported under the EDF should be professionally managed;
  • The Daughter Funds/ fund manager should have a track record and investment experience in the relevant sector in which it makes its investments. The experience should be commensurate with the activities of the proposed Daughter Fund;
  • For a Daughter Fund, to be eligible for support by the Fund, it should be set up in India, as per the prevailing Indian laws and regulations. The Fund Manager of the Daughter Fund shall ensure that the laws of the land are fully complied with, in respect to setting up and operation of the Fund.

Selection of Daughter Funds

The Investment Manager of the EDF will look for a combination of the following qualities in selecting fund managers/Daughter Funds including;

  • Knowledgeable, experienced, and stable management team – The team should have technical people who understand the ESDM, Nano-electronics, IT and related sectors;
  • Ability to network and raise the balance funding from other resources;
  • Ability to align with the requirements of the EDF policy and to provide risk capital especially to companies developing new technologies in the area of ESDM, Nano-electronics, IT and related sectors;
  • Stable and proven investment approach of the Daughter Fund/ fund manager;
  • Rigorous due diligence methodology in selecting the Daughter Funds;
  • To enter into a Documentation that protects EDF/Government of India interests;
  • Ability to add value post-investment;
  • Superior investment returns (absolute and relative); and
  • Evidence of value creation through operational improvement

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