The PE firm is looking to mop up Rs 750 crore towards the final close of the fund.
The capital has come from Indian corporates, family offices and High Net-worth Individuals with most investors in its first fund doubling down.
The fund is expected to achieve a final close before December.
The firm, founded by PR Srinivasan and Devinjit Singh, raised its first fund of Rs 351 crore in 2019. Along with its Limited Partners, or sponsors, who co-invested in deals, the firm has invested a total of Rs 450 crore from its first fund.
Its portfolio includes Flight Simulation Technique Centre or FSTC, Barbeque Nation, R4Rabbit, Easy Home Finance, Medsource and Altigreen.
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It has made around eight investments from fund I and will look to make around 8-10 from the second. The cheque sizes, keeping the co-investments from LPs in mind, can range up to Rs 100 crore.
The firm backs companies in sectors such as financial services, healthcare, consumer and business services that have a proven business model and are on their way to generating around Rs 30-35 crore in earnings before interest, tax, depreciation, and amortisation (Ebitda).
In August 2021, the firm fully exited its investments when
Delhivery acquired Spoton Logistics. It also partially sold its stake in Barbeque Nation following its listing on the bourses in April 2021.
“Our fund performance is driven by realized exits and is not based on valuation mark-ups alone. As a matter of fact, Distributions to Paid in Capital or DPI is above 90% in XOF-1. Also, timely exits have enabled us to reinvest and deploy 100% of the fund, reducing the spread between gross and net IRR,” said Srinivasan, managing partner, Xponentia Capital.
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Xponentia Capital looks to raise $100 million for second fund
Domestic institutional investors and family offices are increasingly investing in funds which back early to growth stage companies indicating a larger risk appetite among this asset class.
From seed-angel funds to Special Opportunities to Distress funds, domestic investors deploying rupee capital today have significantly more exposure to such funds which are typically seen as being risky.
Not only have the bouquet of investment options broadened, but the fund sizes have also been inching up. From wealth management firms, family offices to large single-investor venture funds, the investor base is expanding.
“Domestic investors are highly under-allocated to classic private equity and alternatives as an asset class, and both family offices and institutions are keen to invest behind managers with track records and demonstrated performance. We are highly confident that we will achieve and probably exceed, the fund-raising target for our second fund in the coming few months,” said Singh, managing partner, Xponentia Capital.
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