360 ONE Asset Launches INR 4,000 Cr Secondaries Fund

Asset management company 360 ONE Asset has launched a secondaries fund, ‘Special Opportunities Fund-12’, with a target corpus of INR 4,000 Cr to invest in late-stage startups. 

The company claims that this is India’s first alternative investment fund (AIF) dedicated to the private equity secondary market. 

Buying and selling of shares between existing and new investors of a startup is called a secondary transaction and it does not involve issue of fresh shares.

In an internal presentation accessed by Inc42, 360 ONE Asset said that it has already made six investments from the new fund. 

As per a report by The Hindu Business Line, the company has raised more than half of the target corpus for the fund. 

The fund would invest in startups in financial services, healthcare, consumer, and tech sectors. The average ticket size for the investments will be in the range of INR 150- 250 Cr, as per reports. 

In the presentation, 360 ONE Asset said it currently commands a robust deal pipeline spanning secondary-led pre-initial public offering deals, single and multi-asset secondary deals, and special situations. 

Giving the reasoning behind the launch of the fund, 360 ONE Asset’s CIO Sameer Nath said in the presentation, “Over the last decade, $360 Bn has been invested in Indian venture capital and private equity, with only $160 Bn remaining. This leaves $200 Bn of capital seeking liquidity at some point… This scenario underscores the significant momentum for 360 ONE Asset’s secondaries fund, positioning it as a pivotal player in providing liquidity solutions in a market with substantial unmet demand.”

360 ONE Asset is a subsidiary of 360 One. The PE firm’s total assets under management (AUM) stood at INR 23,404 Cr in Q2 2024, growing at a 28% CAGR from FY20 to FY24. It counts 30 unicorn startups, including Anarock, Swiggy, and FirstCry, among its 101 portfolio companies. 

Meanwhile, 360 ONE Asset’s total AUM and public market mandates exceed $8.5 Bn. Last month, it invested $13.2 Mn in waste management startup Recykal. 

The launch of the dedicated secondaries fund comes at a time when there has been a marked increase in the number of secondary deals in the Indian startup ecosystem. A number of startups have also seen secondary deals or are expected to witness them, especially in their pre-IPO rounds. Some of these deals include: 

• Early backers of Vineeta Singh-led SUGAR – RB Investments and India Quotient – are in talks with Malabar Investments to divest some of their stake in the startup
• IPO-bound Capillary Technologies secured $95 Mn in secondary transactions as part of a Series D funding round of $140 Mn
• Early stage investor Chiratae Ventures sold some of its stake in Lenskart, Bizongo, Rentomojo, among others to private equity firm Madison India Capital for $70 Mn
• Ecommerce unicorn Meesho is in discussions with investors for a fresh infusion and a secondary round. 

Beside the launch of the Special Opportunities Fund, 360 ONE Asset has also launched another fund focused on startups operating in the healthcare space, ‘Healthcare Opportunities Fund’. 

360 ONE Asset has already made one investment from the fund and is about to close its second investment soon. It said that it has roped in five anchor investors for the fund, who also sit on its advisory board. It will look to back companies with proven business models and ability to scale profitably in healthcare services, healthtech, diagnostics, and life sciences categories. 

Besides, it is also looking to launch an early stage venture fund and its fourth pre-IPO fund.