Multiples Marks Final Close Of $430 Mn Continuation Fund

SUMMARY

The deal was was led by HarbourVest Partners, Hamilton Lane, LGT Capital Partners and TPG NewQuest

The fund raised capital to acquire interests in Vastu Housing Finance Corporation, Quantiphi and APAC Financial Services

The transaction allows Fund II investors with an opportunity to realise returns on a portfolio of successful investments

Multiples Alternate Asset Management (Multiples) has marked close of its $430 Mn (INR 3,670.62 Cr) continuation fund in one of India’s largest-ever portfolio transactions in private equity space.

According to the firm, the deal was “oversubscribed” and was led by four global institutional investors – HarbourVest Partners, Hamilton Lane, LGT Capital Partners and TPG NewQuest.

A continuation fund is an investment vehicle which is designed to increase the holding period of assets in an existing fund which is approaching the end of its lifecycle. Besides, it also allows general partners (GPs) to maintain control over promising assets and allow limited partners (LPs) an opportunity to liquidate their investment.

The transaction allows Fund II investors with an opportunity to realise returns on a portfolio of successful investments, while offering the option to reinvest in the continuation fund to support Multiple’s ongoing ownership of these companies, the PE firm added.

The fund raised capital to acquire interests in three high-growth private companies from Multiples Fund II, along with additional follow-on capital. These companies include Vastu Housing Finance Corporation, Quantiphi and APAC Financial Services.

UBS Private Funds Group was the financial advisor for the transaction.

Founded in 2009 by Renuka Ramnath, Multiples claims to control over assets under management (AUM) worth $3 Bn and has invested in about 35 private companies till date.

It has backed the likes of ACKO, Delhivery, Dream Sports and MoEngage including others. The PE firm aims to invest in growth and late stage startups and a typical Multiple’s cheque is worth between $15 and $50 Mn.

So far, the Mumbai-based PE firm has launched four funds with a corpus of $405 Mn, $690 Mn and $680 Mn, respectively. While it did not disclose the corpus value of its fourth fund, but marked its first close at $640 Mn.

The development comes at a time when a number of PE firms have pitched in to float new funds to back the Indian startup ecosystem.

Earlier this year, InCred Alternatives, the alternative investment arm of InCred Capital Financial Services announced the close of its maiden PE fund which exceeded its original target size of INR 500 Cr after exercising the greenshoe option.

Meanwhile, Kotal Alternate Asset Managers marked the first close of its life sciences fund at INR 250 Cr which has a corpus of INR 1,600 Cr.

Last month, growth stage-focussed PE Trident Growth Partners also marked the first close of its maiden fund at over INR 1,000 Cr. The fund aims to hit the final close at INR 2,000 Cr by this year end.