ChrysCapital's eighth fund aims to raise $800 mln

Private Equity (PE) fund ChrysCapital is looking to raise $800 million for its eighth fund. It could also go up to $1 billion, depending on market conditions, says a person familiar with the development.

“The fund, launched last month, is seeking long-term, capital-oriented investors like sovereign funds, endowment funds, and pension funds for this round of capital raise. The fund should close by March,” he adds.

Singapore’s sovereign wealth fund GIC, Asia Alternatives, and Harvard Management Company were among the limited partners for ChrysCapital’s seventh fund.

ChrysCapital is one of India’s largest homegrown funds, managing over $3 billion in assets. It has completely exited its first five funds;  it has a total of 83 investments across seven funds, of which it has exited 68. “The fund has 15 portfolio companies, perhaps the lowest in eight years. This reflects its focus on both deployment and exits,” the person says.

At present, ChrysCapital is investing from its seventh fund, which has deployed nearly 70 percent (of over $600 million) in companies like Hero FinCorp Ltd and L&T Finance.

Over the last three years, the fund has raised its average deal size to $60 million. Earlier in 2018, it led a $325 million investment round in Mankind Pharma.

On December 5, it acquired a majority stake in GeBBS Healthcare Solutions, and is expected to soon close an investment of $30-40 million in listed firm Dr Agarwal’s Healthcare, apart from seeking to close a third deal in December.

In 2018, the fund has made three full exits and two partial exits and has returned nearly $300 million. “Last year, ChrysCapital returned $600-700 million and is focussed on returning the sixth fund shortly,” the source says.