Peak XV to launch perpetual ‘Anchor Fund’ backed by its partners, team members

Peak XV Partners, a leading venture capital firm, is set to introduce a new investment vehicle named the Peak XV Anchor Fund. 

The fund is designed as a permanent capital vehicle, also known as an evergreen perpetual fund, aimed at allowing the firm's leadership and team members to invest in future funds and collaborate with other fund managers. 

What is the purpose of the fund? 

The creation of the Peak XV Anchor Fund marks a significant shift towards institutionalizing internal funding, a practice where the firm's partners and fund managers have previously participated as limited partners. 

The fund aims to foster a culture of high accountability and alignment with limited partners (LPs) without affecting existing relationships with LPs. It represents a move to ensure Peak XV managers are substantial investors in the firm’s future funds, thereby deepening their commitment and alignment with the firm's investment strategies.

Sourcing capital from firm's partners, team members 

Unlike similar funds, such as the one launched by Sequoia Capital, the Peak XV Anchor Fund will exclusively source its capital from the firm’s partners and team members. This approach is seen as groundbreaking within the venture capital industry, as it focuses on building a global network for learning, collaboration, and exploring investments in new areas and asset classes.

Starting in April, the fund plans to invest in global seed and early-stage venture funds, especially those working on artificial intelligence and new technologies.

Peak XV’s evolution 

The launch of the Anchor Fund comes after Peak XV Partners' separation from Sequoia Capital, marking its independence and the inheritance of over $9 billion in assets under management.

The strategic move is aimed at leveraging the firm's significant resources to make impactful investments in India and Southeast Asia's burgeoning startup ecosystem. Peak XV has a history of leading investments in notable startups and has introduced programs like Surge to support early-stage companies, positioning itself as a major player in the region.