Kedaara Capital Targets $1.7 Billion For India's Largest Private Equity Fund

Kedaara Capital, among the leading investment management firms, is aiming to secure $1.7 billion for what may evolve into India's largest private equity fund, driven by significant interest in the nation's rapidly expanding economy amid a global transition away from China. According to a report by Reuters, this upcoming fund will surpass its 2021 fund by 54 per cent in size.

Despite the limited number of notable India-focused private equity funds so far, there is a steady increase in the size of funds. Kedaara was established in 2011 by former executives from Temasek and General Atlantic and stands out as one of the best buyout funds.

As per sources cited in the report, around 80 per cent of the fund will come from backers who supported Kedaara's previous funds, while the remaining 20 per cent will be sourced from new investors, including institutions like the U.S.-based Cleveland Clinic and the University of Minnesota.

Kedaara is planning to unveil the fund by the end of March and is presently in the process of finalizing documentation with its investors. The fund is expected to target sectors such as banking, healthcare, consumer goods, and software.

Investors are reportedly showing interest in contributing over $2 billion to the new fund. However, Kedaara opted to limit it to approximately $1.7 billion to avoid overextending its deployment capacity. Past investors in Kedaara's funds encompass entities like Canada's Ontario Teachers Pension Plan, Singapore state investor Temasek, and the International Finance Corporation, as per data from Pitchbook.