Anicut Capital closes Rs 300 crore equity continuum fund for IPO-ready startups

Chennai-based multi-asset investment firm Anicut Capital recently announced the closure of its maiden late-stage equity continuum fund of Rs 300 crore.

The fund aims to support high-potential companies from Anicut’s portfolio that are preparing for an Initial Public Offering (IPO) within the next 2-4 years.

The fund is specifically designed for 5-6 companies that have demonstrated significant growth and profitability, making them strong candidates for public listing.

Why was this fund launched?

The new fund is part of a broader trend where venture capital firms create winners-only funds to re-invest in their most successful portfolio companies.

As these companies expand, they require larger investments and funds like Anicut’s continuum fund help maintain ownership stakes while providing the necessary capital for further growth. 

How will the fund be deployed?

Anicut Capital plans to write cheques of Rs 50-60 crore from the new fund, which is double the amount typically provided by its growth equity funds.

Currently, Rs 400 crore has been deployed across seven deals, with the entire corpus expected to be deployed by the end of the financial year.

“We are excited about the successful closure of the Rs 300 crore Anicut Equity Continuum Fund (Rs 200 crore + Rs 100 crore green-shoe option) and the strong investor interest it has attracted. The swift closure (of the fund) within eight weeks, bolstered by a substantial Rs 60 crore investment from HDFC AMC, underscores strong investor confidence," said Ashvin Chaddha, Managing Partner and Co-founder of Anicut Capital.

Managing assets worth Rs 3,000 crore

Incorporated in 2015, Anicut Capital manages six alternate investment funds (AIFs) with assets worth Rs 3,000 crore. 

The firm has backed 120 companies, including notable names like Bira, Blue Tokai, and Milky Mist. Anicut Capital has a diverse range of funds catering to different stages of a company’s lifecycle, from seed to growth stages. They also have a private credit fund that finances promoter stake buyouts and acquisition finance.

Currently, Anicut is also in the process of raising its third credit fund, targeting a corpus of Rs 1,200-1,500 crore.

“Our third credit fund is progressing well, with significant deployments expected by June, reaffirming our dedication to market opportunities. Expanding on private credit and early-stage innovation, we’ve launched three active fund structures in GIFT City and demonstrated strong investment execution with $100 million deployed in the first half of 2024,” said IAS Balamurugan, Managing Partner & Co-founder, Anicut Capital.