News Update

Private equity fund Oaks Asset Management raises Rs 1,000 crore in funding

• ByStartupStory     |    June 23, 2022

OAKS Asset Management, a mid-market private equity firm, has announced that it expects to raise Rs 1,000 crore for its consumer fund, up from the earlier anticipated Rs 700 crore. According to the corporation, the markup is a result of rising investor interest in sustainable cash flows, which OAKS favours because it supports high cash-burn companies that need repeated capital raises.

“Over the past 12 to 18 months, we have experienced some of the most exhilarating periods of our journey, in stark contrast to the generally sombre commentary that one may hear about the investment climate. According to Vivek Anand PS, founder and managing director of OAKS Asset Management, “We have always invested in conventional consumer brand stories driven by seasoned entrepreneurs or business families that focus on profitable growth.” Anand continued, “We do not invest in businesses that rely on ongoing fundraising efforts, nor do we invest in companies that compete on a winner-take-all basis.”

The vehicle was introduced in 2021 and is registered as a Category-II Alternative Investment Fund with the Securities and Exchange Board of India (Sebi). By the end of July, the fund’s first close is anticipated. The company has invested in Shree, an ethnic clothing manufacturer, InCred, CredAble, and food catering company Foodlink. 

According to OAKS, Hero Electric, a firm in its portfolio, is on pace to raise a larger round this quarter and anticipates closing the round at a premium to the last round. The firm added that 2 out of 5 portfolio companies are anticipated to go public in the upcoming 18 to 24 months. In November 2021, OAKS made an investment in the direct-to-consumer (D2C) food business Troo Good using money from the consumer fund.

Kenneth Serrao, co-founder and chief investment officer at OAKS Asset Management, said: “For us to eventually be ready with a figure that’s more than 40% larger than what we’d initially imagined is, perhaps, a credit to our strong resolve and conviction in our investment philosophy.

According to the fund, India’s market continues to present a variety of straightforward chances for penetration and growth. There is concern about a wider dealmaking slowdown at the time of the fundraiser. India-focused and rupee funds have been gaining popularity among investors as the majority of well-known global funds have warned their founders about the liquidity crisis. funds including Sequoia Capital, Matrix, and Accel NSE 1.71 per cent.

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