Nepal’s First Domestic Private Equity Fund, ‘Avasar Equity Diversified Fund’ Announces Closure With Collection of Massive 4.50+ Billion Fund

April 21, 2023

The first domestic Nepalese private equity fund registered with SEBON under the Specialized Investment Fund Regulation, 2019, Avasar Equity Diversified Fund, a private equity and venture capital fund manager licensed by the Securities Board of Nepal (SEBON), announced the closure of the NPR 4.50+ billion fund.

In spite of challenging market conditions, the maiden fund has received an overwhelming response from its investors. The successful close of the Fund is a significant milestone in the history of Nepal’s Private Equity and Venture Capital industry.

The Fund will provide the much-needed capital to elevate the performance and unlock the value of Nepalese companies that have the potential but lack the resources to implement their growth strategies. The Fund, being sector agnostic, shall strive to invest in high-growth companies operating in various sectors such as manufacturing & processing, financial services, technology, energy, real estate, logistics, health, education, and tourism.

What is an Equity Firm?

An investment company that uses funds from other investors or its own funds for its growth and startup operations is referred to as a private equity firm or equity firm. Equity firms are usually not listed publicly, and their shares are not traded in the stock market. The major purpose of private equity firms is to provide the investors with profit, usually within 4-7 years.

Why Invest in Equity Fund?

Equity funds are in many ways the perfect investment vehicles for investors who are not as experienced in financial investing or who do not have a sizable quantity of capital to invest. For most individuals, equity funds are sensible investments.

The diversification of a fund’s portfolio reduces risk, and the relatively low capital requirements for purchasing shares of an equity fund are the characteristics that make them most appropriate for small individual investors. For an individual investor to accomplish a comparable level of risk reduction through diversification of a portfolio of direct stock holdings, a sizeable investment spotify promotion capital would be needed. An equity fund can diversify successfully by pooling the capital of small investors without imposing onerous capital requirements on every investor.

Equity funds are overseen by qualified professional portfolio managers with extensive experience, and their prior performance is available to the public. The federal government has strict regulations regarding equity fund transparency and reporting obligations.

The mission of Avasar Equity Limited

Its mission is to find and fund exceptional Nepalese entrepreneurs and turn their innovative and visionary business ideas into reality. The organization aims to channel private funds into productive sectors and support the entrepreneurial ecosystem of the country.

About Avasar Equity Limited

Avasar Equity Limited is promoted by four commercial banks: Siddharth Bank Limited, Kumari Bank Limited, Sanima Bank Limited, and Nepal Bank Limited, High-Net-Worth Individuals, and diverse Industry Professionals.