industry

ChrysCapital unveils $850m new fund, largest till date


India’s oldest private equity firm ChrysCapital is raising a new fund of at least $850 million, people with direct knowledge told TOI. The fund, which will be ChrysCapital’s eighth and would be one of its largest to date, is expected to close in the first quarter of next year.

The fund size could go up to $950 million with the firm’s four partners also planning to contribute $50-100 million, the people added. ChrysCapital filed documents regarding the latest fund with the US Securities Exchange Commission some days ago.

The fresh capital-raise by ChrysCapital will take the total money raised so far to over $4 billion. The firm has received commitments worth over $1.6 billion, or nearly two times the targeted fund-raise of $850 million. ChrysCapital declined to comment on the report.

ChrysCapital joins a slew of global and local investment firms like TrueNorth and Multiples that are raising funds for a region seeing a surge in deal-making. This development comes even as certain risk capital providers tighten purse strings in the wake of political uncertainties leading up to the general elections in 2019.

Existing sponsors — including sovereign wealth managers, global pension funds and large university endowments — are participating, the sources added. ChrysCapital invests across sectors like financial services, IT & business services, pharma, life sciences and consumer.

“The domestic fund-raise scenario is robust as local investors repose faith in the Indian equity market. Plus, they are looking at alternative platforms such as private equity compared to public market investments,” said Vishal Tulsyan, CEO of Motilal Oswal Private Equity, which recently raised Rs 2,300 crore in India for its third and largest fund till date.

Founded in 1999, ChrysCapital counts former Goldman Sachs executive Kunal Shroff, ex-Ranbaxy honcho Sanjiv Kaul, former KPMG executive Ashley Menezes and manufacturing expert Sanjay Kukreja as partners. The firm is known for its 2016 investment in India’s largest stock exchange NSE and cutting other lucrative deals in non-bank financial services company Hero FinCorp and skin care specialist Curatio.

ChrysCapital, after deducting management fees and fund expenses, has returned $5 billion to its sponsors so far, making it one of the most successful private equity investors in the world’s sixth-largest economy. It still has $1.2 billion of capital invested from the previous funds, having fully exited the first five funds. Some of its most profitable exits include HCL Technologies, Intas and Mankind Pharma. Private equity money has become mainstream in India’s M&A economy, which crossed $100 billion in a record deal-making year. Both foreign and domestic private equity firms are writing bigger cheques as buyout opportunities galore in the world’s fastest-growing major economy.





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