Mumbai: Avendus Future Leaders Fund III has acquired a stake worth ₹140 crore in Parag Parikh Financial Advisory Services (PPFAS) from promoter Neil Parag Parikh and Khushboo Joshi, president of the wealth management firm.
“We have taken just a shy over 1% stake in the company. This is a cash-rich and high-growth business with a great management team," Ritesh Chandra, managing director, Avendus Future Leaders Fund, told Mint.
As income levels rise, more traction may come into institutional modes of capital, Chandra said. "From channel perspective, wealth management will possibly be one of the largest beneficiaries of this shift as the proportion of the population that is investing has increased,” he added.
The secondary investment is aligned with Avendus’ strategy of partnering with high-quality, market-leading businesses that demonstrate strong fundamentals and long-term growth potential.
“We believe PPFAS is well positioned to capitalize on the structural growth opportunities in India's asset management industry, with growing preference for financial investments among Indian households and increasing investor participation in the capital markets,” Chandra said.
Chandra added that PPFAS consistently delivered strong growth, with its assets under management expanding at a CAGR of around 70% over the past five years. As of June 2026, the fund manages approximately ₹1.43 trillion in assets under management.
With the latest investment, Avendus' third fund has deployed about 30% of its targeted ₹1,800 crore corpus and expects to make an additional five to six investments over the next year.
Overall, the Future Leaders Fund III has a consolidated AUM of over ₹4,000 crore. It focuses on investing in late-stage market leaders with a strong growth potential and its portfolio also includes Lenskart Solutions, Sagility, SBI General Insurance, Licious, Juspay, Zeta, Veritas Finance, Avanse Financial Services, among others.
In the order of priority, manufacturing is “extremely interesting now for us,” Chandra said, adding that healthcare is next. “We are also open to evaluating businesses in the financial services sector, especially in lending, as we are seeing some correction in the valuation multiples.”
The first future leaders fund, raised in 2019, was about ₹373 crore in size, followed by the second fund in 2022 with a ₹1,500 crore corpus. The first fund has already returned about 151% and is in the process of liquidating its other existing positions.
The second fund has returned about 20% on its investments, with some of the companies in the process of going public. “We want to wait for the public markets to be slightly more stable before we start exiting our positions,” Chandra added.
The other notable investments of the fund include La Renon Healthcare, Aragen Life Sciences, and IL JIN Electronics.
Meanwhile, chairman and CEO of PPFAS Neil Parag Parikh in a statement, said, “As we evolve into a full-service asset management platform, with businesses spanning mutual funds, wealth management, GIFT City funds, private equity, and the National Pension System (NPS), this partnership marks an important milestone in our journey.”