ChrysCapital raises $2.2 billion in India’s largest PE fund

ChrysCapital has raised the largest-ever private equity fund from a domestic PE firm after raising $2.2 billion for ChrysCapital X, the company said. This represents a jump of more than 60% compared to Fund IX’s $1.35 billion in 2022.Another private equity firm, Kedaara Capital, had last year raised India’s largest PE fund with a corpus of $1.73 billion for Kedaara IV. Meanwhile, Renuka Ramnathled Multiples PE closed its fourth fund in 2023, raising $620 million.

Since its founding in 1999, ChrysCapital has raised a total of nearly $8.5 billion through 10 private equity funds, a continuation vehicle and its public market fund. Through its private equity funds, the company has deployed more than $5.5 billion in more than 110 portfolio companies. “If you look at the global landscape, India is much better positioned than most economies,” Kunal Shroff, managing partner at ChrysCapital, told ET. “We have a large domestic market and significant under-penetration in many categories, which continues to drive additional growth.”

The company has delivered strong returns on its investments in companies such as Intas Pharmaceuticals, Mankind Pharma, GeBBS Healthcare, Infogain, the National Stock Exchange and Awfis. The company has already returned nearly $7.8 billion with a 3.0x ROI from more than 80 exits to its investors, the company said.

From a private equity perspective, Shroff noted that the market has developed meaningfully. “Entrepreneurs are now more open to partnerships – they are willing to offer larger stakes than before. Fifteen years ago, acquiring even a 5-10% stake was a challenge. It is common today to see larger minority or even control deals and this shift has significantly increased the size of the private equity market in India,” he added. investors from Japan, the Middle East, Southeast Asia, Europe and the US. Furthermore, ChrysCapital has raised capital from Indian investors for the first time, with strong participation from both institutional investors and large family offices. According to Kunal, the fund has made a conscious effort to broaden its investor base and reduce concentration among global LPs. “The goal is to expand our reach, connect with a broader pool of LPs in different regions and build a more diversified investor base,” he said. He added that ChrysCapital has raised domestic capital for the first time in its private equity fund – a deliberate move to tap India’s growing wealth.“As Indian investors gain a better understanding of private equity, we believe domestic capital will grow faster than global capital and remain more aligned with India’s long-term story,” Kunal added.

Fund

The pharmaceutical and healthcare sectors have been a strong area with Chryscapital achieving returns between 3x and 9x. ChrysCapital’s major investments in the pharmaceutical and healthcare sector include Intas Pharmaceuticals, Mankind Pharma, Corona Remedies and Eris Lifesciences, Curatio Healthcare and Torrent Pharmaceuticals.

The fund recently exited Mankind Pharma with an internal rate of return (IRR) of 24%. With a total investment worth ₹2,210 crore in Mankind Pharma, ChrysCapital made an exit worth ₹7,510 crore.

Shroff believes that geopolitical issues have a relatively limited impact on ChrysCapital’s portfolios. In the pharmaceutical segment, most portfolio companies are domestically focused and continue to grow with strong margins and healthy returns on equity.