Avendus fund buys PPFAS stake worth Rs 140 crore from promoters

Private equity investor Avendus Future Leaders Fund III (FLF), which is part of the Avendus Group, bought shares of Parag Parikh Financial Advisory Services (PPFAS) worth around Rs 140 crore from its promoters, Neil Parag Parikh and Khushboo Joshi.

Avendus’ investment in PPFAS was done through a secondary transaction to acquire just under a 1% stake in one of India’s largest mutual fund houses. It bought the stake from Neil Parag Parikh, Chairman and Chief Executive Officer of PPFAS, and Khushboo Joshi, President of Wealth Management at the company.

With this, Avendus’ third fund has deployed nearly 30% of its targeted Rs 1,800 crore corpus and expects to make an additional five to six investments over the next year.


Also read: Parag Parikh Flexi Cap Fund’s June moves: ITC, TCS among key buys; Dr Reddy’s, Maruti see stake cut

All about PPFAS
Founded in 1992, Parag Parikh Financial Advisory Services (PPFAS) claims to be one of India's earliest Sebi-registered Portfolio Management Service (PMS) providers. Its assets under management (AUM) stood at Rs 1.48 lakh crore as of March 31, 2026, marking a 39% year-on-year (YoY) rise from Rs 1.06 lakh crore reported in the corresponding time last year.

Its Parag Parikh Flexi Cap Fund is the largest active flexi cap fund by AUM, managing assets worth Rs 1.10 lakh crore in June.

What Avendus management said
“Parag Parikh has built one of India’s most trusted and differentiated asset management franchises, backed by a disciplined investment philosophy and governance,” said Ritesh Chandra, Managing Director of Avendus Future Leaders Fund. He added that with financial savings in India continuing to shift towards mutual funds and long-term investing, the company is well positioned to benefit from sustained industry tailwinds.

“For Avendus, the investment represents an opportunity to partner with a scaled, high-quality, founder-led financial services franchise with a durable competitive moat and consistent compounding potential,” Chandra further told The Economic Times.

What PPFAS management said
Neil Parag Parikh, Chairman and CEO of PPFAS and one of the selling promoters, welcomed Avendus FLF as the firm’s partner. “Over the years, we have built a trusted brand and a strong track record, anchored in disciplined investing and a client-centric, long-term approach to wealth creation. As we evolve into a full-service asset management platform, with businesses spanning mutual funds, wealth management, GIFT City funds, private equity, and the National Pension System (NPS), this partnership marks an important milestone in our journey,” he said in a press release.

“We believe Avendus FLF shares our long-term vision and values, and that this partnership will further strengthen our platform, enhance our capabilities, and enable us to deliver greater value to our clients, investors, and other stakeholders,” said Neil Parag Parikh, Chairman and CEO, PPFAS,” he added.

Avendus Future Leaders Fund has backed several other notable companies as well, including Lenskart, Sagility, SBI General Insurance, Licious and others. The unlisted shares of PPFAS have gained around 11% in six months to trade at around Rs 18,250 apiece, according to data on unlistedzone.

This comes as the stock market recovers from the sharp lows recorded earlier this year, as Iran and US tensions ease and oil prices correct. Equity mutual fund inflows surged nearly 26% month-on-month to Rs 28,973 crore in June, compared with Rs 22,907 crore in May.

Also read: These 9 equity mutual fund categories see inflows in June; midcap funds emerge on top

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