Financial Services Firm Avendus Unveils $350 Million Fund for Tech, Health Startups

Avendus of India Launches $350M Late-Stage Fund

Three points you will get to know in this article:

  • Avendus launches third Future Leaders Fund to raise Rs 3,000 crore.
  • Avendus Future Leaders Fund managed Rs 1,850 crore, returned all capital, and gained 4x in 4 years.
  • Diverse investors on fund platform, with companies going public soon.
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Introduction to Avendus

Avendus logo

Avendus is a leading Indian financial services firm that provides a wide range of customized solutions in asset management, credit solutions, investment banking, institutional equities, and wealth management. Established in 1999 in Mumbai, Avendus has expanded globally with offices in 11 cities across 4 countries, bringing global perspectives and thought leadership. The company’s key milestones include becoming India’s largest investment bank and the 2nd largest in Asia by deal volume in 2021, launching new business lines, acquiring the institutional equities business of Spark Capital, receiving investment from KKR, and supporting women entrepreneurship through its CSR initiatives.

Avendus Unveils Third Future Leaders Fund Targeting Rs 3,000 Crore

Avendus, a financial services company, has unveiled its third Future Leaders Fund with a goal of raising Rs 3,000 crore, plus an additional Rs 1,500 crore through a green-shoe option. This late-stage fund is set to concentrate on large-cap investments within private markets, specifically targeting industries like financial services, consumption, digital and technology, healthcare, and manufacturing.

The fund intends to undertake 10-12 investments, each averaging Rs 200-300 crore. These investments will encompass both primary and secondary transactions in firms with fragmented institutional investor shareholdings. Selected companies must exhibit a strategic competitive advantage, consistent execution across various market cycles, and robust operating metrics, ensuring a leading market position.

Avendus Future Leaders Fund Platform Boasts Impressive Track Record

The Avendus Future Leaders Fund platform, which includes two initial funds, has collectively managed assets exceeding Rs 1,850 crore. Impressively, the first fund has returned the entire investor capital ahead of schedule, achieving nearly four times the original investment within four years, with notable investments in Lenskart Solutions Private Limited and the National Stock Exchange of India Limited. Meanwhile, the second fund has made 11 investments so far and intends to allocate its remaining capital in the upcoming months. Additionally, four of its portfolio companies are anticipated to go public within the next 6 to 9 months.

Diverse Investor Base Supports Avendus' Future Leaders Fund Platform

The FLF platform is supported by a varied group of investors, including notable family offices from India and the US, high-net-worth individuals (HNIs), and local institutions. Within the FLF platform’s portfolio are companies like Bikaji Foods, Ujjivan Small Finance Bank, Lenskart Solutions, National Stock Exchange, Delhivery, VerSe Innovation (Dailyhunt), SBI General Insurance, Licious, Juspay, Zeta, Indegene, Veritas Finance, FirstCry, Avanse Financial Services, and Xpressbees.

Avendus, a financial services firm, has launched its third Future Leaders Fund targeting Rs 3,000 crore to invest in large-cap private companies across sectors like finance, consumption, tech, and healthcare. The platform’s previous funds have delivered strong returns, with the first fund returning all capital and generating 4x gains in 4 years. The second fund has made 11 investments, with 4 portfolio companies expected to go public soon. Avendus has attracted a diverse set of investors, including family offices and HNIs, to support its Future Leaders Fund platform.

Neha Kamath

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