Leading financial services group Avendus on Thursday announced the first closure of its new Rs 750-crore fund with a commitment of Rs 584 crore, mostly from existing investors.
The fund, a category-II Alternative Investment Fund (AIF) registered with Sebi, is targeting to raise Rs 750 crore with a green shoe option of an additional Rs 500 crore.
Most of the commitment for the new fund has come from existing investors in the first series, Avendus said, adding it has a 5-year tenor with an option to extend it by another two years.
The first series of the fund, Avendus future leaders fund I, was launched in 2019. It has investments in Lenskart Solutions, Delhivery, VerSe Innovation, Bikaji Foods, National Stock Exchange and Ujjivan Small Finance Bank.
The new fund, Avendus future leaders fund II, is focused on investing in privately-held, scaled up market leaders/emerging leaders, in an ecosystem that is witnessing the emergence of new companies led by dynamic entrepreneurs, it said.
The new fund seeks to back such companies and entrepreneurs by investing in small minority stakes in their businesses in the digital, consumption and financial services segments.
Avendus said a majority of the large first fund investors have reposed their faith in its investment strategy, and have upsized their investments in the new fund. The fund has also received good response from several large family offices.
Ritesh Chandra, managing partner at the fund, said the new fund series is positioned to capitalise on the strengths of the Avendus ecosystem and participate in the value creation journey.
The Avendus Group is a leading provider of financial services with an emphasis in areas of investment banking, wealth management, credit solutions and asset management. Established in 1999 in Mumbai, the group is present in India, Britain, Singapore and the US.
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