8 months ago
Foundation PE Expands India Investments Amid Secondary Market Growth
Foundation Private Equity is a company that invests in other companies through a process called private equity.
They have a fund of $120 million and have already invested about 60% of it, with half of their deals happening in India.
They think India is a great place to invest because many companies there need money, and there aren't many other investors doing what they do.
Other big companies are also starting to invest in India.
Foundation helps these companies by giving them money when they need it, which allows the companies to keep growing.
They do this by working with the companies' managers and other investors.
India is becoming a big market for this kind of investment, and Foundation wants to be a part of it.
Foundation Private Equity has deployed 60% of its $120 million fund, with half of its eight deals in India.
The firm plans to expand its team in India to capitalize on the growing secondary market opportunities.
India's secondary market is driven by funds nearing the end of their life cycles and seeking liquidity.
Private equity and venture fundraising in India have tripled in the past decade, with $78 billion committed since 2020.
Foundation specializes in GP-led and LP-led secondary transactions, helping companies and investors with liquidity solutions.
- Who
- Foundation Private Equity, a pan-Asian secondaries firm, and various other global and domestic players
- What
- Expansion of investments in India's secondary market for private equity and venture capital
- Where
- India, with a broader context in Asia
- When
- Ongoing, with a focus on 2024 and future growth
- Why
- Growing need for liquidity among PE/VC firms, conducive regulatory environment, and limited competition in the specific space
Key facts
- Fund Size
- $120 million
- Investments Made
- 8 (4 in India, 3 in China, 1 in Australia)
- India's Share of Asian PE/VC Investments in 2024
- 20%
- India's Global Rank in Venture-Backed Private Unicorns
- 3rd
- Key Players in India's Secondary Market
- Oister Group, Tribe Capital Management, Kenro Capital, Neo Asset Management, 360 One Asset Management, TR Capital, TPG NewQuest
- Foundation's Specialization
- GP-led and LP-led secondary transactions
- Notable Continuation Vehicles in India
- Multiples ($430 million), ChrysCapital ($700 million), Kedaara Capital ($300-400 million)
Quotes
Jason Sambanju
Partner, chief executive, and founder of Foundation Private Equity
“India was our most important market for our Asian strategy, and we did half of the eight deals from our first fund in the country. The region is emerging as one of the most interesting secondary markets out there driven by a conducive regulatory environment and we think there are a lot of the right conditions for this market to really develop.”
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“This market is still in its nascent stages in India and for it to truly develop, we need scale in terms of the size of the LP position and the willingness of these large entities to sell at market values. This is still evolving in India.”
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Alok Gupta
Partner and head of India at Foundation Private Equity
“From a team perspective, we currently have three people in India, and we will expand that selectively. The idea is to really catch the early wave of opportunities in the country, and it has become a very attractive market for us to focus on, given the limited competition in the specific space we operate in.”
livemint.com
“We also decided to look at India as one of the key geographies as a large number of venture capital and private equity players are looking for liquidity.”
livemint.com
Sources
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