Mumbai: Nikhil Raghavan, former principal at US-based private equity fund Bain Capital LP, is the latest to join the fund-raising bandwagon.
Raghavan, who was with Bain Capital between 2008 and 2017, has set up his technology-focused PE fund Marathon Edge Partners Llp and is raising $125-150 million as a first fund, according to two people aware of the development.
“Raghavan plans an offshore technology-focused fund with a first close at $75 million and a final close at $125-150 million," said one of the two persons, both of whom spoke on the condition of anonymity.
According to the second person, Prakash Chellam, managing director and CEO (Singapore Operations) at JM Financial, is joining hands with Raghavan in setting up the firm.
When contacted, Raghavan confirmed the development, but refused to disclose further details. “As we have signed the non-disclosure agreement with investors, we are not able to disclose anything now," he said.
“I am not able to speak about the plans at this moment," Chellam said over phone.
An email sent to JM Financial went unanswered.
Prior to joining Bain, Raghavan worked with Boston Consulting Group.
Chellam’s expertise lies in information technology and he has advised on several IT-ITeS deals for JM Financial. He has been with JM Financial for nine years. Before that, he set up and headed Infosys’s business development efforts for seven years across France, Benelux (Belgium, the Netherlands, and Luxembourg), and Scandinavia.
Several PE veterans have quit management positions and launched their own PE funds. Warburg Pincus LLC has witnessed the exits of two senior executives—managing director and co-head Niten Malhan, and managing director of Warburg Pincus India Nitin Nayar—last month. Both Malhan, with a 16-year stint with the US fund, and Nayar, have plans to launch their own funds.
In October, Vishwarupe Narain, partner at TPG Growth, left the growth-equity investment platform of the US-based firm to pursue new fundraising opportunities.
Vikram Nirula, founding partner at private equity firm True North (formerly India Value Fund Advisors), which manages around $2 billion of assets, resigned from his post in January and plans to launch a new fund.
Last year, Bala Deshpande, India head of US venture capital fund NEA, quit and set up an independent investment firm —MegaDelta Capital Advisors—with plans to raise around $250-300 million of capital for its first India-focused fund.
In February last year, Mathew Cyriac, co-head of the private equity business at Blackstone Group in India, quit the firm and acquired Florintree Advisors, a Mumbai-based alternative asset manager.
The private equity sector has witnessed robust growth in 2017 as India received a record $24.4 billion in PE investments last year, 26% more than the previous highest of $19.3 billion recorded in 2015, according to data compiled by Venture Intelligence, a researcher focused on private company financials, transactions and valuations.