Avendus Launches Third Future Leaders Fund Targeting Rs 3,000 Crore
Avendus, a leading Indian financial services firm, has unveiled its latest venture: The Avendus Future Leaders Fund III (FLF III). This late-stage fund aims to raise Rs 3,000 crore with the potential to reach Rs 4,500 crore through a green-shoe option.
Focus on Large-Cap Private Market Investments
FLF III will concentrate on making significant investments in established companies within the private market. The fund targets sectors with promising long-term growth prospects, including:
- Financial Services
- Consumer Goods
- Digital Technology
- Healthcare
- Manufacturing
Strategic Investments and Experienced Leadership
The fund plans to make 10-12 strategic investments, averaging Rs 200-300 crore each. These investments can involve both directly funding companies (primary transactions) and acquiring existing shares from other institutional investors (secondary transactions).
FLF III seeks companies with a clear competitive edge, a proven track record of success across various market conditions, and robust operational metrics that solidify their market leadership.
Ritesh Chandra, Managing Partner at Avendus Future Leaders Fund, elaborates on the fund’s philosophy: “FLF III maintains our core strategy – capitalizing on the immense potential of established private companies while collaborating with existing financial partners. We remain committed to supporting exceptional, high-quality businesses with sustainable competitive advantages and a defined path to liquidity.”
Targeting Consistent Returns and Reduced Volatility
FLF III is designed to deliver consistent, predictable returns for investors with minimized portfolio volatility. This will be achieved by identifying unique investment opportunities and offering diverse exit options, including secondary sales and public listings.
Strong Track Record of Prior Funds
The Avendus Future Leaders Fund platform boasts a successful history with its first two funds accumulating over Rs 1,850 crore in combined assets.
- Fund I: Notably, the first fund returned the entirety of invested capital ahead of schedule, generating nearly four times the initial investment within four years. Some successful investments included Lenskart Solutions and the National Stock Exchange of India.
- Fund II: The second fund has already completed 11 investments and plans to utilize its remaining capital soon. Four companies within this fund’s portfolio are expected to go public within the next 6-9 months.
Diverse Investor Base and Established Portfolio
FLF attracts investments from a broad range of sources, including prominent family offices from India and the US, high-net-worth individuals, and domestic institutions.
The FLF platform’s portfolio is a testament to its successful investment strategy. It includes established 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.