Multiples Alternate Asset Management, the private equity firm that has backed startups such as Delhivery, Acko and Dream Sports, has raised $430 million for a continuation fund to extend its investment in three portfolio companies — Vastu Housing Finance, Quantiphi and APAC Financial Services.
The transaction allows investors in Multiples Fund II to monetise their investments while enabling the firm to continue holding on to high-performing assets, the company said in a statement on May 27.
The continuation fund, which was oversubscribed, is backed by four global investors — HarbourVest Partners, Hamilton Lane, LGT Capital Partners, and TPG NewQuest. Some existing Fund II investors have also rolled over their commitments into the new vehicle, it added.
“Across every fund vintage, Multiples has prioritised providing financial returns and liquidity to our investors,” managing director and deputy CEO of Multiples Sudhir Variyar said.
“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.”
The three companies have each scaled significantly since Multiples' original investment, Variyar added.
Vastu Housing Finance is focused on affordable housing credit, Quantiphi provides AI and digital engineering solutions and APAC Financial Services is an emerging financial platform with a growing nationwide presence.
The fund also includes additional capital for follow-on investments in these companies.
“Multiples’ journey with all three companies originally began with a strong belief in the entrepreneurs,” Variyar added.
These companies have not only scaled significantly and attracted strong investor interest but also embody the principle of trusted partnership that Multiples seeks to build with founders and management.
Vastu, Quantiphi, and APAC represent long-term growth platforms and Multiples remains excited about their journey ahead, he said.
Continuation funds and secondaries is gaining traction in India as a tool to provide liquidity to existing investors while extending ownership in high-performing assets.
In these structures, high-performing assets are spun out of an existing vehicle into a new one, backed by fresh capital and a longer time horizon.
Also read: Secondary funds bloom as venture capital investors seek more exit options
Last year, ChrysCapital closed a $700-million continuation fund anchored by HarbourVest Partners, LGT Capital Partners and Pantheon Ventures. The new fund enabled the private equity investor to maintain its stake in NSE, as the backers of the latest continuation fund bought the stake from investors of ChrysCapital’s Fund VI.
Renuka Ramnath-led Multiples, which focuses on core sectors including financial services, pharma and healthcare, consumer, technology, and more recently the green economy, has backed more than 35 companies and seen exits across IPOs, strategic sales, and secondary transactions. Some its bets include Encube, India Energy Exchange, Kogta Financial, Licious, Milltec, MoEngage, PVR, TI Clean Mobility and Zenex.
It recently led a $50-million Series C round in B2B sourcing platform Geniemode.
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