Novastar Partners targets Rs 350-crore corpus, to invest in venture capital funds

Novastar Partners, a newly launched fund of funds (FoF), is targeting to raise about Rs 350 crore (around $34 million) as it looks to sponsor venture capital funds by becoming a limited partner (LP), according to sources.

An FoF is an investment strategy where one fund invests in other funds to provide diversification. While these are generally government run, there are a few private FoFs in India, including HDFC FoF, Oister Global and 360One, with a focus on investors backing Indian new-age companies and startups.

Novastar is registered as a CAT II alternative investment fund (AIF) and is targeting the first close over the next four to six months. Novastar Partners was earlier called Dhruva Investment Partners but later changed its name.

Run by founder and managing Partner Dhruv Jhunjhunwala, formerly an investment banker with RBC Capital Markets in New York, and General Partner Gaurav Sharma, previously with Bridgewater Associates, an asset management firm, Novastar will look at backing private market investors.

“Our approach leverages deep relationships with fund managers, investors, and founders across the ecosystem. We provide curated exposure to India’s top private market opportunities through rigorous diligence, meaningful general partner (GP) commitment, and an investor-first structure,” Jhunjhunwala said in a statement.

He has previously dabbled in technology-driven businesses spanning e-commerce, SaaS, gaming, education, and consumer technology.