The two funds have been segregated as a $100 Mn venture capital fund Stakeboat Capital and a family office with a corpus of $75 Mn.
The development has come after Velu exited the diagnostic chain Metropolis Healthcare, selling his 37% stake to leading private equity firm Carlyle, for $134 Mn (INR 900 Cr). He will be the non-executive chairman of Stakeboat. The fund will have two other general partners (GPs) including private equity veteran Kandaswamy Chandrashekhar and Athmanathan Ganesan.
The report mentioned that Velu will be the anchor investor in the new fund, contributing $20 Mn and the remaining $80 Mn will be raised from domestic family offices and large institutional funds.
In a statement, Velu said, “I have been working with PE investors for 11 years now. I know what the entrepreneurs are looking for and where PE can add most value. We will follow a promoter-friendly approach. Just like a stakeboat helps other boats navigate the race, our fund will steer entrepreneurs towards building sustainable and successful businesses.”
The fund is targeted towards the Series B investments in companies, who already have established cash flows and proven business models. Stakeboat will look at investments in domains like healthcare services, consumer- led companies and enterprise technology, while avoiding the consumer internet space.
Though the firm awaits SEBI’s approval, Kandaswamy Chandrashekhar said that they are actively examining deals. The funds will be first used from the anchor investment before external funds are raised from the market. It will look at a seven-year fund with an optional ‘plus two’ and an investment window of four-five years in each investee company.
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