India's Multiples reaches $640m first close on Fund IV
Multiples Alternate Asset Management has reached a first close of USD 640m on its fourth India-focused fund as it bids to become one of the relatively few local managers to raise USD 1bn.
LPs include Canada Pension Plan Investment Board (CPPIB), the International Finance Corporation (IFC) – which proposed committing to the fund last November – State Bank of India (SBI) and assorted domestic insurance companies and family offices. CPPIB and IFC both participated in Fund III, which closed on USD 685m in 2021, short of the USD 750m target.
The new fund, like its predecessor, also features a co-investment sidecar that Multiples can tap for larger deals on a discretionary basis.
What has changed from the previous vintage is the fund domicile. Multiples has joined the growing number of Indian GPs establishing Gujarat International Finance Tec-City (GIFT City) structures for overseas LPs. GIFT City is intended to replicate much of what is offered by Singapore and Mauritius in terms of taxation and other regulations but weaves in advantages tied to being treated as local capital.
Typically, a Mauritius or Singapore entity feeds into an alternative investment fund (AIF), the default onshore structure. However, Multiples has opted against the master-feeder arrangement and has the AIF and GIFT structure working in tandem.
Multiples was founded in 2009 by Renuka Ramnath, formerly CEO of ICICI Venture, and raised $450 million for its debut fund in 2011. A second vehicle of USD 690m – comprising a core fund of USD 550m and a co-investment pool of USD 135m – closed in 2016.
Fund IV will continue in the vein of its predecessors, pursuing growth investments in mid-market companies across the financial services, consumer, technology, and healthcare sectors. There are expected to be 10-12 investments with cheque sizes falling in the USD 50m-USD 150m range, IFC said.
Recent investments include leading a INR 12bn (USD 145.7m) round for electric vehicle maker TI Clean Mobility and a INR 6.8bn round for active pharmaceutical ingredients producer BDR Pharmaceuticals, and a INR 8.7bn round for non-bank financing company (NBFC) Kogta Financial. Multiples has also backed neobank Niyo and re-upped in direct-to-consumer meat and seafood supplier Licious.
"This fundraise is yet another important milestone in the growth and evolution of Multiples as an institution providing wings to the dreams and aspirations of entrepreneurs. We are excited about the India opportunity and the tremendous entrepreneurial energy that's propelling the country forward,” said Sudhir Variyar, a managing director and deputy CIO at Multiples, in a statement.
Should the firm hit target, it will join ChrysCapital Partners and Kedaara Capital as domestic private equity firms with funds of USD 1bn or more. Kedaara closed its third fund on USD 1.1bn in 2021 and ChrysCapital raised USD 1.4bn for its ninth fund last year. ChrysCapital secured USD 1.25bn for its fifth fund in 2007 but the corpus was later pared back to USD 960m as investment conditions deteriorated.
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