360 ONE Asset launches secondaries fund with a target corpus of Rs 4,000 crore

360 ONE Asset Management, previously known as IIFL Asset Management Ltd, has launched a Rs 4,000-crore secondaries fund.

The fund is designed to acquire existing stakes in private equity or other investment funds from current investors seeking liquidity.

Named the ‘Special Opportunities Fund-12’, it aims to invest in late-stage startups, marking a significant move in the Indian private equity secondary market through an alternative investment fund (AIF).

Why is there a need for a secondary fund in the Indian market?

The Indian venture capital and private equity landscape has seen $360 billion invested over the last decade, with only $160 billion remaining. This leaves $200 billion seeking liquidity.

Sameer Nath, Chief Investment Officer and Head of PE & VC at 360 ONE Asset emphasized the critical need for secondary solutions, stating, "How many of these companies will go public? How many will have an M&A outcome? And how many will need a secondary solution?"

This unmet demand underscores the significant momentum for the secondary fund, positioning it as a key player in providing liquidity solutions.

How has the new fund performed so far?

360 ONE Asset has already initiated six investments from the newly launched fund.

Notably, the firm has surpassed the halfway mark in securing the target corpus for the fund. The fund's robust pipeline includes secondary-led pre-IPOs, single and multi-asset secondary deals, and special situations.

The average investment ticket size is expected to range from Rs 150-250 crore, focusing on sectors such as financial services, healthcare, consumer, and technology.

360 ONE Asset growth

This launch signifies 360 ONE Asset's strategic expansion into the private equity secondary market.

The firm manages over $8.5 billion in assets and is part of the larger 360 ONE Group, which oversees $56 billion in assets. The firm has a portfolio of 101 companies, including 30 unicorns, such as ANAROCK, Swiggy, and FirstCry. 

The secondary fund complements its existing investment strategies, which include multi-asset funds, early-stage, mid-stage, pre-IPO, and now late-stage investments.

Building healthcare fund

In addition to the secondary fund, 360 ONE Asset is developing a healthcare fund focused on startups in healthcare services, healthtech, diagnostics, and life sciences.

The firm also plans to launch an early-stage venture fund and its fourth pre-IPO fund in the coming months.

Last year, they raised $258 million for their largest credit fund to date and acquired a controlling stake in the investment platform Mumbai Angels Network, which has since launched two funds for early-stage startups.