Multiples Raises USD 430 Million for Continuation Fund to Support Key Investments

Multiples Alternate Asset Management, a domestic private equity firm, has successfully raised USD 430 million through a continuation fund. This initiative allows the firm to maintain its investment in three portfolio companies while also offering liquidity to some investors. The capital was secured with the support of four global investors: HarbourVest Partners, Hamilton Lane, LGT Capital Partners, and TPG NewQuest.

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The continuation fund aims to acquire interests in three rapidly growing private companies from Multiples Fund II. It also includes additional follow-on capital. Typically, private equity funds have a set timeframe for exiting investments and returning profits to investors. However, some investors from Fund II have opted to reinvest in this new fund.

Focus on Long-Term Growth Platforms

The three companies that will continue to receive investment are Vastu Housing Finance Corporation, Quantiphi, and APAC Financial Services. Vastu is a mortgage lender, Quantiphi provides AI and digital engineering solutions, and APAC is a financial services platform. These companies represent long-term growth opportunities that Multiples is keen to support.

Sudhir Variyar, managing director and deputy chief executive of Multiples, highlighted the firm's commitment to delivering financial returns and liquidity across all fund vintages. "This continuation fund allows us to deliver liquidity with certainty to our Fund II investors while staying invested in businesses that embody the entrepreneurial mindset and the DNA that we deeply value," Variyar stated.

Investor Confidence and Future Prospects

Variyar expressed confidence in the entrepreneurs behind Vastu, Quantiphi, and APAC. He noted that these companies have scaled significantly and attracted strong investor interest. "Vastu, Quantiphi, and APAC represent long-term growth platforms, and we remain excited about their journey ahead," he added.

The continuation fund's launch is notable within India's private equity sector due to its rarity. The fund experienced over-subscription, indicating strong investor confidence in Multiples' strategy and the potential of the portfolio companies.

This strategic move by Multiples underscores its dedication to nurturing promising businesses while ensuring investor satisfaction through liquidity options. By staying invested in these companies, Multiples aims to support their continued growth and success.

With inputs from PTI