The firm aims to raise Rs 3,000 crore ($343m) for its Future Leaders Fund III, having already secured Rs 850 crore in its first close in January. It expects to complete fundraising by June, said Ritesh Chandra, managing partner for private equity strategy.

Avendus has traditionally relied on high-net-worth individuals and family offices for capital. However, the latest fund marks a shift as institutional investors, including insurers, increasingly enter private equity. “High-net-worth money is a broad-based tool, but institutional investors provide the scale we need,” Chandra said. He noted that domestic institutions, historically underinvested in private assets, are now more open as returns improve.

If Avendus meets its target, this fund will be two-thirds larger than its Rs 1,800 crore predecessor raised in 2022. Existing investors have shown strong backing, with 39% committing to the new fund, many increasing their contributions by up to 40%. Larger commitments mainly came from family offices, Chandra said.

The fund will focus on minority stakes in late-stage companies across technology, financial services, consumer sectors, healthcare, and selective manufacturing investments. Chandra emphasized the growing institutionalization of capital while maintaining Avendus’ wealth franchise. “Institutional investors are playing a bigger role, but we remain committed to our strong wealth network,” he said.

Source: Business Standard

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