Consumer Sector-Focused Middle-Market Private Equity Fund OAKS Asset Management Has raised Rs 1,000 crore for the first close of its second fund. Senior fund managers told ET, “The company has raised more capital than expected, with increasing investor demand and large checks from existing investors.”

The final closing of the new fund is expected by the end of next month. Last year, the firm launched its second private equity fund to invest in consumer startups and mid-sized companies in India.

“Investors are increasingly appreciating the power of high-quality profitable businesses with sustainable cash flow versus cash-burn-oriented businesses that require serial capital raising. Record low fixed income and real estate as an asset class “The volatility of the company is driving investors to move in this direction. This has resulted in increased allocation from existing investors and sign-ups from many new investors.” kenneth seraoFounder and CIO, OAKS Asset Management.

“The capital has come from Indian Family Offices and UHNI. While our existing investors are back with a big check, a lot of new investors are getting referrals from existing ones. giant woolFounder and CEO, OAKS Asset Management.

Ootam, Serao, Vivek Anand PS, and Sandeep Somani launched OKS Asset Management in 2015. He raised his first Rs 700 crore fund in 2017, which was deployed in five companies- banquet and catering company FoodLinks, Incred, Credable, Hero Electric and Shree. , a womens ethnic wear manufacturer.

While Hero Electric and Credible are in talks to raise a bigger round, two other portfolio firms have got a follow-on funding On a mark up in valuation, Uttam said. With the new fund, the firm has already invested in direct-to-consumer (D2C) food brand True Good.

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“Four out of five businesses have been flagged and two out of five businesses are expected to be listed through IPOs in the next 18 to 24 months,” said Uttam.

The new funds will support 10-12 founders who have demonstrated meaningful revenue and growth in large target markets in a capital-efficient manner.

Vivek Anand PS, Co-Founder and Managing Director, said, “Contrary to the otherwise depressing commentary that one might hear about the investment climate, we have seen some of the most exciting times in our journey over the past 12-18 months.” Director, Oaks Asset Management.

The fund believes that as a market, India continues to offer numerous but smooth penetration and growth opportunities.

Fundraising comes at a time when there is a fear of a major recession in dealmaking. With most major global funds cautioning their founders about the liquidity crunch, India-focused and rupee funds are gaining traction among investors. Funds like Matrix,

Sequoia Capital, and Lightspeed have raised or are in the process of raising large funds for the Indian market.

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