Ex-Wall Street banker’s firm to launch Rs 350 Cr fund to invest in India’s private markets
The majority of the target corpus is reserved for direct funds, with the firm targeting investment between Rs 15 crore and Rs 80 crore in a number of funds, the source cited above added. The remaining portion will be invested directly into 8-10 companies.
Former Wall Street banker and investor Dhruv Jhunjhunwala has launched Novastar Partners, an investment firm, in India. The firm is looking to back private equity managers and companies in India with its maiden fund.
While the firm did not disclose details about its fund, a source familiar with the matter told YourStory that the firm is targeting a corpus of Rs 350 crore, with a green shoe option of Rs 150 crore.
The fund will act as a fund-of-funds, making investments in direct funds, including venture capital funds, private equity funds, and secondary funds, among others, as well as directly in growth-stage companies.
The majority of the target corpus is reserved for direct funds, with the firm targeting investment between Rs 15 crore and Rs 80 crore in a number of funds, the source cited above added. The remaining portion will be invested directly into 8-10 companies.
The capital is predominantly being raised from India, with a small portion coming from the US, the source added.
In a conversation with YourStory, Jhunjhunwala said Novastar Partners will focus primarily on technology and tech-enabled businesses, targeting sectors such as software, IT services, healthtech, fintech, edtech, artificial intelligence, and deeptech. “Our goal is to allocate capital into highly scalable, capital-efficient companies that demonstrate strong network effects,” he said.
Jhunjhunwala previously worked with RBC Capital Markets in New York. The firm’s leadership team includes Gaurav Sharma, an alumnus of Duke University, who was previously with Bridgewater Associates and APL, a Japan-based private investment firm.
On why Novastar Partners chose to enter the Indian private markets, Jhunjhunwala noted that the firm is extremely bullish on India’s macro opportunities, its GDP growth, a rising middle-class, and deepening digital adoption, along with attractive valuations in private markets.
“We believe the best way to capture India’s golden decade of private market growth is through a fund-of-funds model,” said Jhunjhunwala. “No single company or fund can capture the full breadth of India’s opportunity. Our strategy is designed to give investors diversified access to the country’s most compelling private equity funds and companies within one structure.”
The firm plans to announce its initial fund partnerships in early 2026, marking the start of its investment rollout.
Edited by Kanishk Singh