Private equity firm ChrysCapital said Tuesday it has raised $700 million (about Rs 5,840 crore) for a “continuation fund” to acquire the stake held by its sixth flagship investment vehicle in the National Stock Exchange.
The continuation fund has been anchored by US-based HarbourVest Partners, and European firms LGT Capital Partners and Pantheon Ventures, ChrysCapital said in a statement.
The PE firm used the fresh capital to buyout its Fund VI from the NSE. Fund VI had invested in the NSE in 2016.
ChrysCapital held a 3.93% stake in the NSE as of March 31, 2024. This stake was worth around Rs 6,100-6,200 crore based on recent share transactions.
The latest transaction allows ChrysCapital to return money to its investors in the sixth fund while also providing an opportunity to new investors to gain exposure to India’s largest stock exchange. Investors of Fund VI were also given an option to roll their interest into the continuation fund.
To be sure, PE firms often raise continuation funds to score exits from existing portfolio companies and to provide liquidity to limited partners of previous funds. In a similar instance, Samara Capital last year raised $150 million for a continuation fund from TR Capital and other investors. This fund then bought Samara’s stake in three companies.
According to a person close to the development, ChrysCapital received demand for almost $1.5 billion for the continuation fund. Investors from North America, the Middle East and Asia Pacific showed interest in the fund, as did US pension funds as well as global sovereign wealth funds, the person said.
The NSE was likely the final remaining asset in ChrysCapital’s Fund VI, which hit its final close in 2012 after raising about $510 million.
Overall, ChrysCapital has raised more than $5 billion across nine funds. It has invested over $4 billion across more than 100 deals and realised $7 billion from 80 full exits at a 2.6x multiple on invested capital.
The PE firm's other recent deals include a complete exit from Mankind Pharma for over $800 million and an investment of $70 million in Ahmedabad-based LaRenon Healthcare.
UBS Private Funds Group served as the exclusive financial advisor to ChrysCapital on this transaction. Cooley LLP advised ChrysCapital and Kirkland & Ellis LLP acted for HarbourVest Partners and LGT Capital Partners.
HarbourVest is a global private markets firm with over $125 billion in assets under management as of December 31, 2023. It provides clients access to global primary funds, secondary transactions, direct co-investments, real assets and infrastructure, and private credit.
LGT Capital Partners is a global alternative investing specialist with over $100 billion in AUM and more than 700 institutional clients in 44 countries. Pantheon is a global private markets specialist, managing $62 billion in discretionary AUM as of September 30, 2023 on behalf of more than 1,000 investors.
