Avendus raises Rs 850 cr for its Future Leaders Fund III

Leading financial services firm Avendus Group has raised about Rs850 crore ($100 mn) for its Future Leaders Fund III (FLF III), which was launched last summer with a target of raising Rs 3,000 crore ($350 million).

Registered as a Category-II Alternative Investment Fund (AIF) with SEBI, FLF III is targeting a raise of R1,500 crore with an additional green shoe option of Rs1,500 crore. The Fund plans to make 12-14 investments, with an average ticket size of Rs150–300 crore, in sectors such as financial services, healthcare, technology, consumer goods, and manufacturing.

Leading domestic family offices and Indian institutions participated in this first close, it said.


"This milestone also highlights the significant demand for late-stage private equity as a core component of a balanced alternative portfolio," said Ritesh Chandra, Managing Partner, Avendus Future Leaders Fund. The commitment to date for FLF III is a testament to the enduring trust our investors place in the strength of FLF’s investment strategy and its team, he added.

As a large cap fund for private markets, FLF backs high-growth market-leading companies and category-creating businesses. FLF investors have also been offered co-investment opportunities in portfolio companies, it said.

FLF I and II portfolio companies include Lenskart, Bikaji, Juspay, SBI General Insurance, and Sagility Technologies, amongst others. FLF manages a consolidated AUM of over Rs1,850 crore across the last two funds.

FLF I is claimed to have returned over 100% of investor capital within 4 years, while FLF II has recently been fully deployed. FLF III is in the process of finalizing its first investment in the healthcare sector, which reflects the fund’s strategy of building a portfolio of consistent compounders and money multipliers, it said.