Avendus Future Leaders Fund III (FLF), a private strategic fund of Avendus Group, has made an investment of approximately 140 crore rupees in Parag Parikh Financial Advisory Services (PPFAS).
Planned Fund Close
Furthermore, the fund announced that it plans to reach its final close at around 1,800 crore rupees by the end of the current month.
Deal Details and PPFAS
The investment in PPFAS was made through a secondary transaction, in which FLF acquired shares from promoters Anil Parag Parikh and Kushbu Joshi. Founded in 1992, PPFAS is an equity-focused asset management company.
Ratesh Chandra, Managing Director of Avendus Future Leaders Fund, stated that the company views PPFAS as well-positioned to capitalize on structural growth opportunities in India's asset management industry, given the growing preference of Indian households for financial investments and increasing investor participation in capital markets.
PPFAS Strategy and Portfolio
According to FLF, this investment in PPFAS aligns with the fund's strategy of partnering with high-quality, market-leading enterprises possessing strong fundamentals and long-term growth potential.
PPFAS's flagship product, the Parag Parikh Flexi Cap Fund (PPFCF), manages approximately 1.43 lakh crore rupees in assets under management (AUM). The company reported that PPFCF has demonstrated a Compound Annual Growth Rate (CAGR) of about 18% over the last decade.
PPFAS Leadership Vision
Nilam Parag Parikh, Chairman and CEO of PPFAS, noted that the company's transition to a full-service asset management platform covering mutual funds, wealth management, GIFT City funds, private equity, and National Pension System (NPS) marks a significant milestone in the company's development.
He also emphasized that, in PPFAS's view, Avendus FLF shares their long-term vision and values, and that this partnership will strengthen their platform, enhance capabilities, and allow them to deliver greater value to clients, investors, and other stakeholders.
FLF's Further Plans
Regarding the final close of Fund III, Avendus reported that the investment vehicle has already deployed 30% of its capital and expects to make five to six more investments over the next 12 months.
FLF manages a consolidated AUM exceeding 4,000 crore rupees across all its funds and focuses on investing in late-stage market leaders with high growth potential. Its portfolio includes Lenskart Solutions, La Renon Healthcare, Sagility, SBI General Insurance, Licious, Juspay, Zeta, Veritas Finance, Avanse Financial Services, Aragen Life Sciences, and IL JIN Electronics.
