Avendus launches Rs 3,000 Cr late-stage fund
The fund intends to make 10-12 investments, with an average allocation of Rs 200-300 crore per investment, targeting sectors such as financial services, consumption, digital & technology, healthcare, and manufacturing.
Financial services company Avendus has launched its third fund under the Avendus Future Leaders Fund (FLF Fund) platform and aims to raise a corpus of Rs 3,000 crore (~$350 million), including a green-shoe option of up to Rs 1,500 crore.
The late-stage fund, which is focused on large cap investments in private markets, intends to make 10-12 investments, with an average allocation of Rs 200-300 crore per investment, said Avendus in a statement.
It will be targeting sectors such as financial services, consumption, digital & technology, healthcare, and manufacturing.
The fund’s investments will include both primary transactions and secondaries in companies that have disaggregated institutional investor shareholding. These companies will need to have a strategic competitive edge, execution capabilities across market cycles, and strong operating metrics with dominant market positions, the statement added.
“With Avendus Future Leaders Fund III, our approach remains straightforward--harnessing the vast potential of late-stage private opportunities while co-opting the existing financial sponsor ecosystem," said Ritesh Chandra, Managing Partner, Avendus Future Leaders Fund.
"We continue to back differentiated, high-quality businesses with sustainable competitive moats and a clear roadmap to liquidity. The FLF platform aims to deliver consistent, predictable, and repeatable outcomes with reduced portfolio volatility. Our commitment to an investor-first approach, ensures a strong focus on liquidity with periodic distributions, a relatively shorter investment holding period, and best-in-class governance standards,” he added.
Among its portfolio companies, some of its recent exits from FLF's first fund include Lenskart Solutions Private Limited and the National Stock Exchange of India Limited–both generating nearly 4x returns for the investors within four years, said Avendus.
While the first fund (FLF I) has returned the entire investor capital, the second fund has completed 11 investments to date and is planning to deploy its remaining capital over the next few months. Four of its portfolio companies are likely to list on the exchanges over the next 6-9 months.
The FLF platform has a diverse investor base that includes prominent Indian and US family offices and HNIs, and domestic institutions. It's portfolio companies include Bikaji Foods, Ujjivan Small Finance Bank, Lenskart Solutions, National Stock Exchange, Delhivery, VerSe Innovation (Dailyhunt), SBI General Insurance, Licious, Juspay, Zeta, Indegene, Veritas Finance, FirstCry, Avanse Financial Services and Xpressbees.
Edited by Megha Reddy