Sumir Chadha talks about new venture, Westbridge

In an interview with AVCJ, Chadha confirmed the departure. "The four of us are very excited to be restarting Westbridge," he said. Apart from the brand, the team will take over the original Westbridge funds, the $140 million fund one raised in 2000 and the $200 million fund two raised in 2005.

The three partnerships raised using the Sequoia India name will be left with the Silicon Valley firm and managed by the team Chadha built together during his tenure at Sequoia. Chadha added that they will continue to keep their carried interest and as well as the 22 board seats as well as play a role in the management of those investments.

Unlike the old Westbridge, an early stage venture firm, the new Westbridge will focus mostly on public investments. "Our investments will be mostly of a secondary nature but we are flexible," says Chadha, who described the fund as "a hybrid between mutual fund, hedge fund and private equity fund."

However unlike similar companies in the space such as Ashish Dhawan's Chryscapital and Nalanda Capital, the firm held by former Warburg Pincus India co-head Pulak Prasad, Chadha says that Westbridge is comfortable taking passive positions and acquiring stock, but won't shy away from privately negotiated deals if available.

In terms of a new fund, the group will be taking two to three months off and then come back to raise capital. "We expect to able to close before the end of the year," adds Chadha. Fundraising in India has been very hit and miss over the past few years, with investors questioning the force of the Indian growth story. Deals are smaller than many would like, and valuations much higher than private equity firms are willing to pay. In addition, LPs are to varying degrees comfortable with the fluidity of the public/private markets barrier. Given that Westbridge plans to capitalize on opportunities primarily in the public domain, the group could well benefit from this distinction, particularly among LPs interested in reaping the rewards of India's GDP growth, but unsure about the private equity model.

 

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• Topics
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• Sequoia Capital
• Sumir Chadha