KKR-backed, Mumbai-based financial services group Avendus Capital, which recently secured the first close of its third private equity (PE) fund at $98 million (Rs 850 crore), is all set to clock its maiden deal from the investment vehicle, said a top executive.
“We made the first close [of Avendus Future Leaders Fund III] because we had to finance a deal… we plan to close it this month [January 2025] itself,” Ritesh Chandra, managing partner at Avendus Future Leaders Fund, told DealStreetAsia in an interview.
Chandra added that the investee is an Indian healthcare firm but did not divulge further details.
Avendus Future Leaders Fund III—registered as a category-II alternative investment fund (AIF) with India’s market regulator Sebi—is targeting a corpus of Rs 3,000 crore, including a greenshoe option of Rs 1,500 crore. Avendus plans to secure the final close of the third PE fund by mid-2025.
Avendus Future Leaders Fund is a late-stage platform launched in 2019. It manages assets of over Rs 1,850 crore across its predecessor funds. Its second PE fund closed in 2022 at $200 million, while it raised about $50 million for Fund I in 2019 to bet on India’s new economy sectors.
Its portfolio companies include eyewear retailer Lenskart, snack maker Bikaji Foods International, digital payments startup Juspay, and SBI General Insurance.
“So far, we have raised money only from domestic investors. While we have got some large family offices on board, we have got a good response from large institutions… Three insurance firms have already committed capital but the number could potentially go up to five…,” said Chandra. He added that the firm plans to tap foreign HNIs before the final close of the third fund.
Besides private equity, Avendus Group’s business spans investment banking, wealth management, and credit solutions. Avendus PE Investment Advisors, the asset management arm of Avendus Group, launched its Rs 4,000 crore ($466 million) third private credit fund earlier this month.
KKR acquired a majority stake in Avendus Group in 2015. The company currently has offices in India, the US, and Singapore.
Edited excerpts of the interview with Chandra:
