Kedaara Capital is raising $1.7 billion for the country's biggest private equity fund: Report

Indian private equity firm Kedaara Capital is on the cusp of creating history by raising $1.7 billion for the country's largest-ever private equity fund, Reuters reported. 

The move comes at a time when India's stock markets are reaching unprecedented heights, signalling a robust interest in the nation's rapidly expanding economy. The fund, which is Kedaara's fourth, marks a significant leap, being 54% larger than its previous fund raised in 2021. 

Investing across a variety of sectors

The forthcoming fund is expected to draw approximately 80% of its capital from existing investors, with the remaining 20% coming from new contributors, including notable institutions like the Cleveland Clinic and the University of Minnesota.

The fund aims to invest across a variety of sectors, including banking, healthcare, consumer goods, and software, pursuing both minority stakes and complete buyouts to diversify its investment portfolio.

Investors' rising interest in the Indian market 

The development follows the geopolitical tensions and market dynamics that have prompted investors to diversify away from China. India's share of Asia-Pacific private equity deals surged to 23% last year, while China's share dropped to a nine-year low of 31%. 

Kedaara Capital investments 

Kedaara Capital has established itself as a formidable force in the Indian investment scene since its inception in 2011 by former executives of Temasek and General Atlantic. The firm's previous funds have raised a combined $2.4 billion, invested in 27 Indian companies, including notable names like Lenskart and Mahindra Logistics.

Kedaara's strategy of regular stake sales has generated significant profits, returning substantial amounts to its investors.