Oister Global, Tribe Capital tie up for $500 mn India-focused secondaries fund
The partnership will leverage Tribe Capital India’s quant diligence with Oister’s Indian private market expertise. The two entities have also already identified their first set of investments.
Bengaluru: Institutional investor Oister Global and venture capital firm Tribe Capital on Monday said they will together launch a secondaries franchise that is $500 million in size to invest in India over the next two years.
“The Indian private equity and venture capital sectors are ripe for secondaries, with increasing numbers of investors seeking to monetize their positions. In the first half of 2024, 62% of startup deals valued at $50 million to $500 million were secondary transactions or buyouts. As companies with strong unit economics prepare for potential IPOs (initial public offerings), we expect demand for secondaries to soar,” Raj Snehil Juneja, co-founder of Tribe Capital India, said in a statement.
The partnership will leverage Tribe Capital India’s quant diligence with Oister’s Indian private market expertise. With Oister’s nearly two decades of experience in the Indian investor ecosystem, the two entities have already identified their first set of investments and will continue to build a strong pipeline.
“Secondaries will be the tipping point for qualified investors to enter private markets, just as IPOs have revolutionised access to public markets,” said Sandeep Sinha, co-chief executive officer of Oister, said in the statement. “We are excited to partner with Tribe Capital India, whose quant-driven investment approach and data expertise perfectly complement Oister's deep local knowledge and on-ground network.”
While the country’s secondary market has steadily become a substantive source of funding, this partnership is expected to drive India further ahead and capitalize on the growing demand. In the last four to five years, $7.7 billion has been transacted—a number that rivals the total amounts raised via IPO exits during the same period, the investment firms said in the statement. Although India’s secondaries market is still at an early stage, globally it is estimated to be at over $130 billion.
With several investors sitting at the end of their fund life cycle, they believe that India presents a large opportunity for such transactions as they seek liquidity and gear up for exits from companies they have been invested in for quite some time.
Earlier this year, Gurugram-based Oister Global, which invested in private equity (PE) and VC funds, said it is looking to deploy ₹4,500 crore in private market funds over the next two years. Known for backing the likes of investment firms such as Blume Ventures and Stride Ventures, it also launched a ₹440 crore fund targeting India’s consumer-driven and emerging technology sectors.
Meanwhile, Tribe Capital India has made investments as well as built and bought out companies on the ground in India. Its focus has been on investing in a smaller cohort of startups and accumulating larger stakes in them. Some of its portfolio companies include unicorns like Apollo.io, Shiprocket, Blackbuck and Docker.
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Business NewsCompaniesOister Global, Tribe Capital tie up for $500 mn India-focused secondaries fund
First Published:23 Sep 2024, 06:26 PM IST
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