BENGALURU: Financial services firm Avendus is launching its third Future Leaders Fund, aiming to raise around Rs 3,000 crore, including a greenshoe option to raise up to a further Rs 1,500 crore.
The later-stage fund, which will focus on large-cap investments in the private market, plans to make 10-12 investments with an average investment size of Rs 2-3 billion each, Avendus said in a statement on Wednesday.
Get cash in minutes!
Apply instantly for the best personal loan with lowest interest rate
The fund will target sectors including financial services, consumer, digital technology, healthcare and manufacturing.
“With Avendus Future Leaders Fund III, our approach is simple: capitalize on the significant potential of late-stage private opportunities while leveraging our existing financial sponsor ecosystem,” said Ritesh Chandra, managing partner of Avendus Future Leaders Fund. “We will continue to back differentiated, high-quality businesses with sustainable competitive advantage and a clear roadmap to liquidity.”
Fund Investment Strategy
The fund’s investments will include both primary and secondary transactions in companies with diversified institutional holdings. These companies should have strong operating metrics with strategic competitive advantages, the ability to execute across market cycles and a leading market position, the statement added.
Related article: Flex workspace market predicted to reach 126 million square feet by 2028: Avendus
Through its extensive network and expertise in the investor ecosystem, Avendus’ third fund aims to provide regular liquidity to its contributors by leveraging differentiated opportunities and multiple exit options, including secondary exits and public market sales.
On a broader level, this has become increasingly important as investors struggle to take profits or exit in the aftermath of overvalued investments made during the pandemic.
Ending with a 4x return
Recent exits from FLF’s first fund include Lenskart Solutions Private Limited and National Stock Exchange of India Limited, “both of which delivered nearly four times returns to investors in less than four years,” Avendus claims.
Avendus added that its first fund has returned all of its investors’ capital ahead of the stipulated deadline with attractive returns, while its second fund has completed 11 investments so far and plans to allocate the remaining capital over the coming months.
The second fund also expects four portfolio companies to go public within the next six to nine months.
Related article: Avendus to provide investment banking services from Singapore
FLF has managed assets of over Rs 1,850 crore across the two funds.
The FLF platform is backed by prominent family offices and domestic institutions from India and the US and its portfolio companies include Bikaji Foods, Ujjivan Small Finance Bank, Licious, FirstCry, Delhivery, VerSe Innovation (Dailyhunt) among others.
