India’s ChrysCapital beats hard-cap in latest fundraise

The India-focused manager raised $257m more than its previous vehicle after four months on the fundraising trail.

ChrysCapital has raised $867 million for its eighth India-focused vehicle, its largest and fastest fundraise.

ChrysCapital VIII was significantly oversubscribed beyond its $850 million hard-cap, managing director Gaurav Ahuja told Private Equity International. All major investors in the previous fund re-upped commitments and strong demand was seen from new LPs, he added.

It is understood the firm began fundraising in late August and wrapped up in December.

Ahuja noted that Fund VIII’s investor base includes sovereign wealth funds, public pensions, insurance companies and foundations from North America. Investors from other regions like Europe, Asia and the Middle East also committed to the fund.

Illinois Municipal Retirement Fund committed $50 million to the vehicle, according to PEI data.

Investors in ChrysCapital’s previous funds include Singapore’s GIC, Munich Private Equity Asia Alternatives and New York State Common Retirement Fund.

“With rising valuations in the US, global trade tensions and market uncertainty, India is seen as a stable destination for investments,” Ahuja said. “What is different this time than 10 years ago is that LPs are no longer just buying the India macro story but becoming a lot more GP-specific in their market analysis.”

On India macro issues, LPs are still concerned about currency risk, how the national elections in May could affect deal-making and the economy, as well as the repercussions of the trade war, he added.

ChrysCapital’s first five funds, which have raised $2 billion collectively, have been fully monetised and realised about $5.5 billion from 70 exits. The firm raised $610 million for its seventh fund in 2017 and $510 million for its sixth fund in 2012.

The firm will stick to its strategy of picking up both minority and control stakes in business services, financials, health and consumer.

India-based managers gathered $6 billion in capital commitments from 2015 to 2017 – 50 percent more than the previous three years combined, according to a report from McKinsey & Company. Buyouts have also grown as a strategy, from 6 percent between 2000 and 2011, to 25 percent in the last three years, reflecting the maturity of the market and GPs changing their operating model to become more active managers, the report noted.