Source: Vecteezy
Giving the largest, if not one of the largest, portfolio transactions ever seen in the Indian private equity space, Indian PE firm Multiples Alternate Asset Management has raised a fund of $430 million continuation. The deal attracted concern and got over-subscribed. The oversubscription reflects continued investor confidence in the firm’s strategy and portfolio
The fund was backed by four major global investors – HarbourVest Partners, Hamilton Lane, LGT Capital Partners, and TPG NewQuest. These firms are household names in the private equity world and their association signals the strength of companies being backed.
Benefits for Investors
The transaction enabled Fund II investors to realize returns on their investments in portfolio companies. Additionally, certain Fund II investors choose to reinvest in the newly formed continuation fund. According to the statement, the continuation fund secured capital to acquire stakes in three private companies from Multiples Fund II, along with additional follow-on funding.
These companies include Vastu Housing Finance Corporation, Quantiphi, an AI and digital engineering solutions provider, and APAC Financial Services, an emerging financial services platform.
“Across every fund vintage, Multiples has prioritised providing financial returns and liquidity to our investors. This continuation fund allows us to deliver liquidity with certainty to our Fund II investors while staying invested in businesses that embody the entrepreneurial mindset and the DNA that we deeply value. Multiples’ journey with all three companies originally began with a strong belief in the entrepreneurs,” said Sudhir Variyar, MD and Deputy CEO of Multiples.
Multiples’ Investment Philosophy
Multiples Alternate Asset Management has established a solid track record in India’s private equity market, having invested in 35 companies across sectors including:
- Pharmaceuticals and healthcare
- Consumer products
- Technology
- Green economy
Some of Multiples’ more recognized investments are Delhivery (a logistics startup), PVR Cinemas, and Licious (a meat delivery company). Their approach is to partner with strong entrepreneurs while building long-term value.
Why This Matters
This deal illustrates a growing trend in private equity. With current market conditions restricting exit options including IPOs and mergers, continuation funds represent a logical alternative. They offer a way for private equity firms to hold on to their top investments longer while simultaneously still returning money to early investors.
For India, this transaction provides an example of how local firms can take advantage of international financial mechanisms to scale business and create value. As the private equity industry matures in India, it is likely we will see more similar deals, which is a plus for investors and entrepreneurs alike.
