Wealth management firm Client Associates, which manages assets under advisory of around $5.5 billion (Rs 45,900 crore), has marked the first close of its maiden venture capital fund, Client Associates Alternate Fund (CAAF).
Client Associates, which has set a target of raising Rs 500 crore for the category-II alternative investment fund (AIF), including a green shoe option of Rs 200 crore, marked the first close at around Rs 300 crore. It is looking to make the final close of the fund by the end of the financial year ending March 2025.
"CAAF represents a significant milestone for us as we venture into asset management," said Himanshu Kohli, co-founder of Client Associates.
CAAF's investment strategy focuses on identifying and investing in pre-Series A, Series A, and pre-Series B and Series B stage companies, primarily in the consumer and consumer-related sectors, along with financial services.
"CAAF's investment strategy is designed to capitalise on the immense potential of India's startup ecosystem...We aim to not only deliver solid returns for our clients but also contribute to the growth and development of the overall ecosystem," said Shivam Diwan, executive director – CA Alternate Funds, Client Associates.
The fund aims to construct a portfolio of 12-15 companies, with investments of Rs 10-50 crore per company. The investment vehicle will also explore later-stage opportunities (pre-IPO) where it feels there could be value-creation.
The fund saw participation from domestic family offices and UHNIs, primarily comprising existing relationships of Client Associates.
Founded by Kohli and Rohit Sarin in 2002, Client Associates provides professional services for private wealth management. It claims that it has served more than 1,100 HNIs and UHNI families in India. It has a presence in Gurgaon, Mumbai, Bengaluru, Kolkata, Patna, Hyderabad, Chennai, Kochi, and Ahmedabad.
