Multiples Alternate raises $640 million for new fund

Renuka Ramnath-led Multiples Alternate Asset Management, a home-grown private equity fund, has raised about $640 million for its fourth India-dedicated deployment platform. The fund is targeting a final closure of $1 billion, expected in the next 4-5 months.

The Canada Pension Plan Investment Board (CPPIB) and financial institutions such as IFC and State Bank of India (SBI) are the anchor investors, or limited partners, in this fund.

Although the fund size will be $1 billion, the fund managers plan to use the green-shoe option and invest up to $1.5 billion from the fourth fund, said a senior executive.


Multiples, founded by former ICICI Venture veteran Ramnath in 2009, invested in logistics firm Delhivery, RBL Bank, multiplex chain PVR Cinemas, Dream 11, HR firm PeopleStrong, IEX Energy Exchange, Livpure, South Indian Bank, Vikram Hospital, ACKO, Licious and MoEngage.

"We have built specialization over the last decade on three main strategies such as identifying big shifts (primarily technology led) and investing in them at their inflection point; catalyzing transformative growth; and investing in platforms for multi-decadal growth potential," said Renuka Ramnath, MD, Multiples.

"It has built a deep specialisation in its chosen sectors of financial services, pharma & healthcare, consumer/consumer tech and enterprise technology. To this, we have further expanded our sector focus on the green economy, and we also plan to pursue big-ticket investments via the co-investment model, with a cumulative investment target of over $1.5 billion in the coming three to four years through fund IV."

It raised the first fund of $405 million in 2011, and closed its second fund of $700 million (including a $150-million co-investment pool) in 2017. it raised a $640 million-third fund in 2019. The first two rounds delivered an average internal rate of return (IRR) of 30% to investors.