Chennai-based investment firm Anicut Capital has announced the closure of its first late-stage equity continuum fund, which totals Rs 300 crore. This fund is designed to support high-potential companies within Anicut’s portfolio that are gearing up for an Initial Public Offering (IPO) in the next 2-4 years. It specifically targets 5-6 companies that have shown significant growth and profitability, positioning them well for public listing.
The launch of this fund aligns with a broader trend where venture capital firms create winners-only funds to reinvest in their most successful portfolio companies. As these companies expand, they require larger investments. Funds like Anicut’s continuum fund help maintain ownership stakes while providing the necessary capital for further growth. Anicut Capital plans to write cheques of Rs 50-60 crore from this new fund, which is double the amount typically provided by its growth equity funds. Currently, Rs 400 crore has been deployed across seven deals, with the entire corpus expected to be deployed by the end of the financial year.
Ashvin Chaddha, Managing Partner and Co-founder of Anicut Capital, expressed excitement about the successful closure of the Rs 300 crore Anicut Equity Continuum Fund, which includes a Rs 200 crore base fund and a Rs 100 crore green-shoe option. He noted the strong investor interest and swift closure within eight weeks, highlighted by a substantial Rs 60 crore investment from HDFC AMC, underscoring strong investor confidence.
Founded in 2015, Anicut Capital manages six alternate investment funds (AIFs) with assets totaling Rs 3,000 crore. The firm has backed 120 companies, including well-known names like Bira, Blue Tokai, and Milky Mist. Anicut Capital offers a diverse range of funds catering to different stages of a company’s lifecycle, from seed to growth stages, and includes a private credit fund that finances promoter stake buyouts and acquisition finance. Currently, Anicut is also in the process of raising its third credit fund, targeting a corpus of Rs 1,200-1,500 crore.
IAS Balamurugan, Managing Partner & Co-founder of Anicut Capital, mentioned that their third credit fund is progressing well, with significant deployments expected by June. This reaffirms their dedication to market opportunities. Expanding on private credit and early-stage innovation, Anicut has launched three active fund structures in GIFT City and demonstrated strong investment execution with $100 million deployed in the first half of 2024.
