Investment manager Reliance Nippon Life Asset Management (RNAM) is set to manage a $187m fund of funds that will be backed by several Japan and India-based corporates, Hindu BusinessLine reported yesterday.
The limited partners for the vehicle, dubbed Indo-Japan Emerging Technology & Innovation, will include insurance firm Nippon Life, automotive manufacturer Suzuki, financial services firm Mizuho Bank and state-owned financial institution Development Bank of Japan, according to an official familiar with the matter.
RNAM is promoted by Japan-based Nippon Life and Reliance Capital, the financial services arm of India-headquartered conglomerate Reliance Group. It holds 85.8% of the fund’s share capital.
The vehicle is expected to reach its first close by the end of September 2019. Approximately $150m, or 80% of the capital, is expected to come from Japanese LPs and the rest from India.
Indo-Japan Emerging Technology & Innovation is intended to invest in 15 to 25 India-focused venture capital funds, with the resulting capital eventually boosting sectors such as the internet-of-things, artificial intelligence, business-to-business software and robotics technology.
Keiichi Onozawa, the South Asia representative of the Japanese Ministry of Economy, Trade and Industry, said: “India and Japan would be able to build a distinguished partnership by leveraging the advantages of each other.
“As of now, the Japanese presence in India is still small, but this fund of funds will stimulate the Japan–India partnership in digital area and will expedite participations from Japan to the Indian startup ecosystem.”
