India: GSK Velu sets up two funds worth $175m

Serial entrepreneur GSK Velu has set up two investment vehicles — a $100 million venture capital fund called Stakeboat Capital and a family office with a corpus of $75 million, according to a report in The Economic Times.

Velu is armed with cash after selling his 37 per cent stake in diagnostic chain Metropolis Healthcare to private equity firm Carlyle for Rs 900 crore (around $135 million).

“Just like a stakeboat helps other boats navigate the race, our fund will steer entrepreneurs towards building sustainable and successful businesses,” said Velu, who will be the anchor investor in the new fund, contributing $20 million.

The remaining funds  will be raised from domestic family offices and large institutional funds.

While Velu will be the non-executive chairman of Stakeboat, the fund will have two general partners— private equity veteran Kandaswamy Chandrashekhar and  Athmanathan Ganesan, who has been associated with Velu for a long time.

“We will hit the ground running,” said Chandrashekhar. “Using funds from our anchor investment, we plan to close some deals before going out in the market to raise funds.”

Even as the firm awaits the approval of Securities and Exchange Board of India, the general partners are actively examining deals. The firm is looking at a seven-year fund with an optional ‘plus two’ and an investment window of four-five years in each investee company.

The fund plans to ride major themes such as healthcare services, consumer- led companies and enterprise technology, but will avoid the crowded consumer internet space.

The GPs are targeting Series B investments in companies with established cash flows and proven business models. “There is a gap in the market,” said Chandrashekhar.

“There is a lot of competition in the seed funding and Series A funding space. Most funds are concentrated on some sectors like consumer internet.  We will fill that gap by targeting mature companies needing growth capital and by being diversified in our approach,” he added.

Both Stakeboat and the family office will also co-invest in deals where capital requirements are larger. “The family office investments will be longer term and more strategic in nature,” said Ganeshan, who will lead the family office.

Also Read:

India: GSK Velu to launch $77m fund to make early-stage investments

Carlyle buys 37% stake in Mumbai-based diagnostic chain Metropolis Healthcare

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.