PE firm ChrysCapital closes $700 million continuation fund in India

ChrysCapital, an India-focused private equity firm, has closed a $700-million continuation fund. The new fund is primarily backed by HarbourVest Partners, LGT Capital Partners, and Pantheon Ventures.

Notably, The newly closed continuation Fund has acquired a stake in the National Stock Exchange of India

Strategic implications

As PE and venture funds are usually pooled investment vehicles and have to give exits to investors based on tenure, a continuation fund helps to keep certain assets in a new fund and allows existing investors to either cash out or roll over their present investments.

ChrysCapital acquired a 5% stake in NSE in 2016, which originally belonged to ChrysCapital VI, LLC.

Investor opportunities and fund impact

"The transaction provided Fund VI investors with an opportunity to monetize the performance of a highly successful investment while allowing continuation fund investors to invest in India’s leading stock exchange and the world’s largest derivatives exchange," ChrysCapital said. 

Furthermore, this arrangement offered Fund VI investors the choice to roll their investment into the continuation fund, enhancing their liquidity and return options.

Over the past 25 years, ChrysCapital has raised more than $5 billion across nine funds, demonstrating a robust track record of successful investments and substantial returns to its investors, with realized gains of over $7 billion. Six out of these nine funds have been fully liquidated, showing a mature cycle of investment and return.