NEW DELHI/BENGALURU : Waterfield Advisors, a Mumbai-based wealth advisory agency, has introduced the ultimate shut of its first fund of funds (FoF) at ₹540 crore from household places of work, ultra-high internet price people, and institutional buyers, two senior executives mentioned.
The FoF invests in non-public fairness (PE) and enterprise capital funds and likewise co-invests in development or late-stage bets within the funds’ portfolio startups with an exit horizon of 4 to 5 years.
“The fund was barely oversubscribed as initially, we have been trying to elevate ₹500 crore,” Siddharth Jhunjhunwala, head of Waterfield’s FoF, mentioned in an interview.
The fund hit the primary shut of ₹200 crore in June final 12 months, almost three months after receiving Sebi approval.
Waterfield can also be trying to launch its second FoF with a corpus of $250 million and expects to make the primary shut by the primary half of 2023, Jhunjhunwala mentioned. “Classic alignment is essential on this enterprise, and we imagine that a number of high quality fund managers are anticipated to hit the markets once more in 2024. We’ve bought to afford evaluating and investing at the moment,” he mentioned.
The primary FoF is trying to deploy 70% of the funds in VC and PE funds, whereas the remaining will probably be allotted in the direction of direct investments in startups in monetary providers, client, healthcare, and tech sectors. “Primarily based on the pipeline, the fund may probably be totally dedicated by the primary half of 2023,” he mentioned.
Up to now, the FoF has made 5 investments, together with commitments in the direction of a PE fund, and seed and development funds akin to A91 Companions, Hearth Ventures, and India Quotient. FoF invests within the vary of $7million-$10 million.
The FoF makes co-investments in startups which can be a part of the VC and PE funds it has invested in. Up to now, the FoF has made one such co-investment in an undisclosed client firm and expects to shut two extra offers quickly, with a ticket measurement of $3-$5 million.
“We’re trying to co-invest in corporations that are pretty de-risked (candy spot of upwards of $300million in valuation) and are both already worthwhile or nearing break even,” Jhunjhunwala mentioned.
Up to now, from the FoF, Waterfield has dedicated 65%-70% of the capital and has deployed 25-30% in VC and PE funds, together with co-investments.
“Co-investment alternatives present quicker returns compared to fund investments which begin exhibiting distributed to paid-in capital within the sixth or seventh 12 months of funding,” Jhunjhunwala mentioned.
“Arriving on the closing shut of our first fund, we have now bought an amazing set of normal companions throughout all of the phases of investing, and the portfolio is extraordinarily thoughtfully constructed,” mentioned Rohan Paranjpey, managing director of different investments, Waterfield.
Arrange in 2011 by Soumya Rajan, Waterfield advises on behalf of a number of outstanding Indian enterprise households on monetary and property planning, succession planning, household governance and funding administration providers, amongst different providers. The corporate has places of work in New Delhi, Mumbai, Chennai, Bengaluru, Kochi and Hyderabad.In February, it closed a $6 million funding spherical from single-family places of work, ultra-high net-worth people and current buyers. The agency’s complete belongings beneath administration exceed $4 billion.
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