Multiples Alternate Asset Management, an investment firm led by former ICICI Venture veteran Renuka Ramnath, has raised as much as $560 million for its third India-dedicated PE fund to invest in sectors such as financial services, consumer, healthcare and IT services, per a report by The Economic Times.
The private equity (PE) major is expecting to make the final close of the fund at $750-800 million over the next 4-5 months, the report added.
The LPs of the fund comprise both domestic and foreign investors such as the National Investment and Infrastructure Fund, India’s first sovereign wealth fund that was set up in February 2015, as well as Canada Pension Plan Investment Board (CPPIB) and IFC, a member of the World Bank group.
Founded in 2009, Multiples currently has close to $1 billion under management, and a portfolio of 18 companies spread across its two funds. It closed its second fund at $700 million in 2017 that included a $150 million co-investment pool. Its first fund was launched in 2011 with a corpus of $405 million.
The firm has so far invested in diverse sectors and its portfolio companies include APAC Financial Services (an NBFC set up by former Deutsche Bank honcho Gunit Chadha), Arvind Ltd (textile giant and flagship company of the Lalbhai group), Livpure (water and air purification solutions), and PVR Cinemas (multiplex chain).
In the burgeoning e-commerce space, its investments include Gurgaon-headquartered Delhivery, which is India’s leading third-party logistics provider.
Fundraising by risk capital investors in India has gathered momentum despite concerns of a slowdown in the domestic economy. As many as 38 firms have raised $6.42 billion so far this year, an 18 per cent jump from the whole of 2018, data available with research firm Venture Intelligence shows.
Investors in India typically keep a long-term horizon in mind. “The long term story in India seems to be strong… This is also because the country has seen some significant exits in the past that have created liquidity for investors,” Fireside Ventures founder and managing partner Kanwaljit Singh told us recently in an interaction. Fireside Ventures recently announced the first close of its second fund at $60 million.
In the PE space, Edelweiss Alternative Asset Advisors raised $1.3 billion to invest in Indian holding or operating firms that are seeking growth. Meanwhile, homegrown giants ChrysCapital and Kotak PE have raised $850 million and $600 million, respectively.