When an AIF is raising money, it sets a “Target Corpus” (e.g., _500 Cr). But if demand is high, they may exercise a Green Shoe Option to accept over-subscriptions (e.g., another _200 Cr).
This allows popular managers to accommodate more investors without launching a new fund. For investors, itÕs a sign of strong market confidence in the manager. However, one must ensure the manager has the capacity to deploy this extra capital effectively and isn’t just asset gathering.
