Mid-market private equity firm OAKS Asset Management is set to raise Rs 1,000 crore for its consumer fund, higher than the initially estimated Rs 700 crore, the company has said.
The firm says the markup is due to increased investor appetite for businesses with sustainable cash flows which Oaks prefers backing. It avoids high cash-burn businesses that require consecutive capital raises.
“In sharp contrast to the otherwise sombre commentary that one might hear about the investment climate, we have witnessed some of the most exciting times in our journey over the past 12-18 months. We at OAKS Asset Management have always invested in traditional consumer brand stories driven by seasoned entrepreneurs or business families that focus on profitable growth,” Vivek Anand PS, founder and managing director, OAKS Asset Management.
Launched in 2021, the vehicle is registered with the Securities and Exchange Board of India (Sebi) as a Category-II Alternative Investment Fund. The first close of the fund is expected by the end of July.
Anand added, “We do not invest in businesses that are dependent on serial fund raises nor do we invest in businesses that operate in the ‘Winner Takes All’ categories.”
The firm has invested in food catering company Foodlink, InCred, CredAble and ethnic wear maker Shree. OAKS said its portfolio company Hero Electric is on track to raise a larger round in this quarter and expects to close the round at a premium to the last round.
2 out of 5 portfolio companies are expected to go public in the next 18-24 months, the firm noted.
From the consumer fund, OAKS has invested in direct-to-consumer (D2C) food brand Troo Good in November 2021.
“For us to eventually be ready with a figure that’s more than 40% higher than what we’d initially thought is, perhaps, a tribute to our strong resolve and faith in our investment philosophy,” said Kenneth Serrao, co-founder and chief investment officer at OAKS Asset Management.
