Alchemy Leaders of Tomorrow (ALOT): Category III AIF for Listed Equities, PIPEs and IPOs
Alchemy Leaders of Tomorrow (ALOT) is an open-ended Category III AIF from Alchemy Capital Management, one of India's longer-standing equity boutiques. It seeks long-term capital appreciation by investing in companies showing the best traits of adaptability to the "new economic normal", driven by innovation and ingenuity, across listed equities, PIPEs and IPO opportunities. Each tranche of contribution has a two-year hard lock.
This guide covers the team, approach, terms and risks.
Alchemy Leaders of Tomorrow (ALOT) is an open-ended Category III AIF from Alchemy Capital Management , one of India's longer-standing equity boutiques. It seeks long-term capital appreciation by investing in companies showing the best traits of adaptability to the "new economic normal", driven by innovation and ingenuity, across listed equities, PIPEs and IPO opportunities . Each tranche of contribution has a two-year hard lock. This guide covers the team, approach, terms and risks. Key takeaways Alchemy Leaders of Tomorrow is a Category III AIF (long-only equity) managed by Alchemy Capital Management Pvt Ltd. Structure: Open-ended, with a 2-year hard lock for each tranche; fund tenure: perpetual. Minimum commitment: ₹1 crore; target fund size ₹500 crore. Offered only by private placement to eligible investors; returns are not assured and the PPM is the binding document. Alchemy Leaders of Tomorrow at a glance Category Category III AIF (long-only equity) Investment manager Alchemy Capital Management Pvt Ltd Fund managers Hiren Ved and Sachin Shah Structure Open-ended, with a 2-year hard lock for each tranche Fund tenure Perpetual Minimum commitment ₹1 crore Initial drawdown ₹1 crore Exit option Yes, after lock-in Target fund size ₹500 crore Sponsor contribution 5% of fund size or ₹10 crore, whichever is lower Exit charges Nil (per guide) Fund terms above are as compiled in the August 2026 AIF guide from manager disclosures. Terms can change between closings; the Private Placement Memorandum (PPM) is the binding source. About Alchemy Alchemy Capital Management was founded in 1999 and runs PMS and AIF strategies for Indian and overseas investors. Co-founder and CIO Hiren Ved leads the investment team, with Sachin Shah as co-manager on ALOT. Alchemy has also run closed-ended series and Emerging Leaders of Tomorrow funds under the same brand; each has its own portfolio and terms. Investment approach ALOT looks for businesses that are adapting fastest to changing economic conditions, with innovation as a driver of earnings growth. It can combine listed stocks with PIPE deals (private placements in listed companies) and IPO allocations. The two-year hard lock on each tranche gives the manager a stable capital base but means investors cannot redeem new money early. How a Category III AIF works Category III AIFs employ diverse or complex trading strategies in listed equities, derivatives and other liquid securities, and may use leverage within limits set by SEBI. They can be open-ended or closed-ended. Unlike Categories I and II, Category III funds do not enjoy pass-through status, so tax is generally paid at the fund level and the post-tax NAV is what investors see. Read our Category III AIF guide (/insights/category-iii-aif-guide) for how these funds differ from PMS and mutual funds. SEBI generally requires a minimum investment of ₹1 crore per investor in an AIF (with lower thresholds for specific cases such as angel funds and accredited investors), and every scheme is offered only through private placement on the basis of its PPM. You can check any AIF's registration on SEBI's list of registered AIFs (https://www.sebi.gov.in/sebiweb/other/OtherAction.do?doRecognisedFpi=yes&intmId=16) . For a full overview of the asset class, see our AIF reviews on Money n Wealth (/insights/category/aif) . Fee structure and share classes Class Capital commitment Management fee (p.a.) Performance fee Hurdle Fixed fee ₹1 crore to ₹5 crore 2.50% NA NA Fixed fee ₹5 crore to ₹10 crore 2.25% NA NA Fixed fee ₹10 crore and above 2.00% NA NA Variable fee ₹1 crore to ₹5 crore 1.50% 15% 10% Variable fee ₹5 crore to ₹10 crore 1.25% 15% 10% Variable fee ₹10 crore and above 1.00% 15% 10% For Category III funds, performance fees are typically charged on gains above the hurdle and subject to a high-water mark, so investors do not pay performance fees twice on the same gains. Confirm the exact mechanics, including whether returns are measured pre- or post-tax, in the PPM. When comparing fees, look at the full cost stack: management fee, performance fee and whether it has a catch-up, set-up and operating expenses charged to the scheme, and any exit load. SEBI requires AIFs to offer a direct plan, and distribution commissions in regular plans must be disclosed. Money n Wealth earns distribution commission on regular plans, as set out in our commission disclosure (/legal/commission) . Key risks Market risk: listed equities can fall sharply, and NAV can decline for extended periods. Concentration and style risk: focused portfolios and a particular investing style can underperform the broader market for years. Liquidity risk: small and mid-cap holdings may be hard to sell in stressed markets; exit loads and lock-ins may apply. Fund-level taxation: Category III AIFs pay tax at the fund level, which affects post-tax NAV and how losses are treated. Manager and key-person risk: outcomes depend heavily on the investment team. PIPE and IPO risk: private placements and new listings can carry lock-ins and higher volatility. Who may consider this fund Eligible investors with a long horizon who are comfortable with a two-year lock per tranche and want exposure to a conviction-led, growth-oriented equity portfolio may evaluate ALOT alongside Alchemy's PMS strategies. Questions to ask before you commit How much of the portfolio is typically in PIPEs or IPO allocations? How does ALOT differ from Alchemy's PMS strategies? When does the two-year lock end for each top-up? Which fee option suits my expected holding period? What does the PPM say about valuation policy, key-person events, investor reporting frequency and the procedure if the tenure is extended? How does this commitment fit your overall asset allocation, liquidity needs and existing PMS (/products/pms) , mutual fund (/products/mutual-funds) and direct equity (/products/equity) holdings? How Money n Wealth can help Money n Wealth helps eligible investors evaluate and access Alternative Investment Funds (/products/aif) and Portfolio Management Services (/products/pms) across managers, so that a decision rests on the documents and on how the product fits your portfolio, not on a pitch. We can walk you through the PPM, compare Alchemy Leaders of Tomorrow with other funds in the same category, explain the drawdown and tax mechanics, and coordinate the onboarding paperwork if you decide to proceed. Next step: book a free portfolio review (/portfolio-review) or talk to our team (/contact) to discuss whether a Category III AIF has a place in your portfolio. You can also start with a financial health check (/financial-health-check) . Frequently asked questions What is Alchemy Leaders of Tomorrow? An open-ended Category III AIF from Alchemy Capital Management investing in listed equities, PIPEs and IPOs. Who manages it? Hiren Ved and Sachin Shah. Is there a lock-in? Each tranche has a 2-year hard lock. What fees apply? A fixed fee of 2.50% to 2.00%, or a variable option of 1.50% to 1.00% plus 15% profit share over a 10% hurdle. What is the minimum investment? ₹1 crore. Related reading ABSL India Special Opportunities Fund (/insights/absl-india-special-opportunities-fund-aif) ABSL India Equity Opportunities Fund (/insights/absl-india-equity-opportunities-fund-aif) Alchemy Capital PMS Review: 7 Strategies, Returns & Team (2026) (/insights/alchemy-capital-management-pms-review) Category III AIF: The Sophisticated World of Long-Short, Quant and Alternative Trading Strategies (/insights/category-iii-aif-guide) All AIF reviews on Money n Wealth (/insights/category/aif) AIF investing with Money n Wealth (/products/aif) More Insights on PMS, AIFs and wealth management (/insights) Sources and official references Alchemy Capital Management: Leaders of Tomorrow Series 2 launch (https://www.alchemycapital.com/press-releases/alchemy-capital-management-launches-new-aif-scheme-alchemy-leaders-of-tomorrow-closed-ended-fund-series-2/) Alchemy Capital Management (https://www.alchemycapital.com/) SEBI: registered Alternative Investment Funds (https://www.sebi.gov.in/sebiweb/other/OtherAction.do?doRecognisedFpi=yes&intmId=16) Securities and Exchange Board of India (SEBI) (https://www.sebi.gov.in/) Disclaimer This article is for information and educational purposes only. It is not investment, tax or legal advice, and it is not an offer, solicitation or recommendation to invest in Alchemy Leaders of Tomorrow or any other security. Units of Alternative Investment Funds are offered only by private placement to eligible investors under the scheme's Private Placement Memorandum. AIFs are not guaranteed or assured-return products; they carry market, credit, liquidity, valuation, concentration and manager risk, and investors can lose part or all of their capital. Past performance of the manager or any of its earlier funds does not indicate future results. Fund details are taken from manager disclosures and public sources believed to be reliable as of the date of writing and may change. Please read the PPM and all scheme documents carefully, and consult your own financial and tax advisors before investing. Money n Wealth is a brand of Predics Fintech Services Pvt Ltd, an AMFI-registered mutual fund distributor (ARN-121995) and APMI-registered PMS distributor (APRN07444), and may earn distribution commission on investments made through it.
