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CX Partners, a new private equity firm promoted by former Citigroup Venture Capital International (CVCI) head Ajay Relan, has achieved the first close of $220 million for its maiden fund. The first close was made by the fund in March this year, sources close to the development told VCCircle. The fund plans a final close of $500-600 million by September this year.

Indian stock markets have also been on a rally with Sensex rising from 8,160 points on March 9 to 14,284 points yesterday.

VCCircle had earlier reported that US-based investment firm Morgan Creek Capital had committed $100 million to Relan's fund. He has two other partners in the fund - former CVCI colleague Jayanta Basu and Amit Bhatiani, who was with New York based hedge fund Duma Capital.

CX Partners has managed to raise capital at a time when many general partners (GPs), especially the first time funds, are finding it extremely challenging to raise money. At the same time several Indian fund managers are on the road to raise their next vehicles. These include India Value Fund, Blue River Capital, ICICI Ventures, Avigo Capital, Zephyr Peacock, Tano Capital, etc.

Many GPs have also decided cut their initial fund closing target. Relan, who is looking at a final close of $500-600 million, has done the same. When he launched his fund in August 2008, the pre Lehman Brothers era, he was targeting $750 million to $1 billion.

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