Financial services firm Avendus on Thursday announced that it has achieved the first close of its Future Leaders Fund II with aggregate commitments of about $78 million (Rs 584 crore).
The fund, a Category-II AIF registered with Sebi, is targeting to raise Rs750 crore with a green-shoe option of another Rs500 crore. The fund has a five-year tenure with an option to extend it by another two years, the firm said in a statement.
The fund saw majority participation from large first fund investors and several large family offices. It is focused on investing in privately-held, scaled-up market leaders/emerging leaders in sectors such as digital, consumer, and financial services, the statement added. The fund will invest in small minority stakes in such businesses.
The fund further seeks to leverage Avendus’ industry expertise, network, relationships, and market leadership to invest in ‘best-in-breed’ companies, the firm said.
“Avendus is at the forefront of working with emerging leaders that are creating great businesses in India. The fund is uniquely positioned to capitalise on the strengths of the Avendus ecosystem and participate in the value creation journey. With an unparalleled access to marquee businesses and deep, long-standing relationships with entrepreneurs, the fund seeks to invest behind market leaders and emerging leaders in the digital, consumption, and financial services segments,” said Ritesh Chandra, managing partner, Avendus Future Leaders Fund.
Avendus launched its first fund, Avendus Future Leaders Fund I, in 2019, which has investments in eyewear retailer Lenskart Solutions, logistics technology startup Delhivery, VerSe Innovation, Bikaji Foods, National Stock Exchange, and Ujjivan Small Finance Bank.
US-based private equity firm KKR had acquired a majority stake in Avendus Group in 2015. The group operates in the areas of investment banking, wealth management, credit solutions, and asset management. Avendus Group has a presence in 10 cities across India, US, UK, and Singapore.
Despite the pandemic, several funds in the country have either raised money or are there in the market to do so.
Earlier this month, venture capital firm Stellaris Venture Partners has closed its second fund at $225 million, much higher than it had planned. Venture debt firm Stride Ventures has also achieved the first close of its second fund — Stride Ventures India Fund II — securing commitments of $74 million of the targeted corpus of $135 million.
Last month, venture debt fund Trifecta Capital also raised $130 million in the first close of its maiden late-stage venture capital fund.