Multiples to raise $500M in second PE fund

Multiples Alternate Asset Management Private Limited, a private equity firm floated by the former ICICI Venture CEO Renuka Ramnath, is mulling to raise $500 million in its second fund, which has already been soft-launched, according to Mint citing a senior executive of the company.

The PE firm is looking to complete fundraising in the next one year.

Multiples had raised its maiden $405 million fund in 2010 wherein Canada Pension Plan Investment Board (CPPIB), Dutch pension fund PGGM, UK’s CDC Group and pension and sovereign funds from Europe and West Asia were the anchor investors.

Apart from global investors, domestic institutional investors, including Life Insurance Corp of India, contributed about 25 per cent to the first fund. For the new fund, the company is targeting to approach more domestic investors while also tapping on to the existing LPs who backed its first fund, Prakash Nene, managing director and chief financial officer at Multiples, told the newspaper.

He said Multiples has invested about 71 per cent of the maiden fund or roughly $287 million. The company has invested in firms including PVR, Sara Sae, Vikram Hospital, South India Bank, Arvind, Mogae Media, Cholamandalam Investment & Finance, Milltec Machinery and Indian Energy Exchange, as per data collated by VCCEdge, the data research platform of VCCircle.

Nene added that the second fund will also be sector-agnostic but the firm is looking at opportunities in the IT and restaurants space and consumer businesses at large, actively.

Multiples was one among a clutch of PE firms set by former Indian heads of larger investment outfits over the last six-seven years. While Multiples was set by former chief of ICICI Venture, Ajay Relan, ex-head of Citigroup Venture Capital in India, formed CX Partners and Manish Kejriwal (Temasek) and Sunish Sharma (General Atlantic) teamed up to form Kedaara Capital.

Multiples would be the first to go ahead with a second fund.

CX Partners, which raised $515 million in its maiden fund, even though it had a larger commitment when it finished fundraising in 2008, has pushed its plans for the second fund. However, last year it had raised a new mezzanine fund.

Kedaara Capital, the last of these three to get going, recently wrapped up its maiden fund and struck its debut deal.

(Edited by Joby Puthuparampil Johnson)

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