Avendus Future Leaders Fund III invests Rs 140 Cr in PPFAS, eyes Rs 1,800 Cr final close
The investment in Parag Parikh Financial Advisory Services was made through a secondary share purchase from the promoters. Avendus Future Leaders Fund III has deployed 30% of its capital and expects to make five to six more investments over the next year.
Avendus Future Leaders Fund III (FLF), the private strategies fund of the Avendus Group, has invested approximately Rs 140 crore in Parag Parikh Financial Advisory Services (PPFAS). The fund also announced that it is on track to achieve its final close at around Rs 1,800 crore by the end of this month.
The investment in PPFAS was made through a secondary transaction, with FLF acquiring shares from promoters Neil Parag Parikh and Khushboo Joshi. Established in 1992, PPFAS is an equity-oriented asset management company.
“We believe PPFAS is well-positioned to capitalise on the structural growth opportunities in India's asset management industry, with growing preference for financial investments among Indian households and increasing investor participation in the capital markets,” said Ritesh Chandra, Managing Director, Avendus Future Leaders Fund.
According to FLF, the investment in PPFAS aligns with its strategy of partnering with high-quality, market-leading businesses with strong fundamentals and long-term growth potential.
PPFAS' flagship offering, the Parag Parikh Flexi Cap Fund (PPFCF), manages approximately Rs 1.43 lakh crore in assets under management (AUM). According to the company, PPFCF has delivered a compound annual growth rate (CAGR) of around 18% over the past decade.
PPFAS Chairman and CEO Neil Parag Parikh said, “As we evolve into a full-service asset management platform, with businesses spanning mutual funds, wealth management, GIFT City funds, private equity, and the National Pension System (NPS), this partnership marks an important milestone in our journey.”
He further noted, “We believe Avendus FLF shares our long-term vision and values, and that this partnership will further strengthen our platform, enhance our capabilities, and enable us to deliver greater value to our clients, investors, and other stakeholders,”
On the final closure of Fund III, Avendus said this investment vehicle has deployed 30% of the capital and expects to make an additional five to six investments over the next 12 months.
FLF manages a consolidated AUM of over Rs 4,000 crore across its funds and focuses on investing in late-stage market leaders with a strong growth potential. Its portfolio includes Lenskart Solutions, La Renon Healthcare, Sagility, SBI General Insurance, Licious, Juspay, Zeta, Veritas Finance, Avanse Financial Services, Aragen Life Sciences, and IL JIN Electronics, among others.
Edited by Megha Reddy