Global private equity firm Siguler Guff is in the process of launching a $350-400 million India-focused continuation fund to stay invested in four of its portfolio companies, people familiar with the matter said.
Siguler Guff is considering the continuation fund to stay invested in value-retail chain Baazar Kolkata, multi-specialty chain Sterling Hospitals, appliance maker Luker Electric Technologies and medical device maker Relisys, the people cited above said on the condition of anonymity.
Private equity and venture capital funds with successful portfolio companies usually launch continuation funds to hold on to investments as the fund life nears completion. This allows the fund's limited partners to exit, while the trophy asset gets more time to mature.
Siguler's aim is to help some limited partners of the previous fund exit, while enabling the firm to continue backing its high-performing assets. The companies did not respond to requests for comment, while Siguler Guff declined to comment.
Last week, Siguler announced a $500 million fund targeting mid-market, founder- and family-owned businesses in India, marking its first focused vehicle for the country. Its previous emerging markets fund of about $238 million had also invested in India.
Growing trend
Limited partners of many large global funds, especially emerging market funds, are increasingly looking to repatriate capital to their home markets, and fund managers often turn to continuation vehicles once the fund's life comes to an end.
In India, homegrown private equity funds including ChrysCapital, Multiples and Kedaara Capital have launched such funds, although the market remains nascent compared to global counterparts.
Last year, Kedaara Capital closed a $300 million continuation fund to back companies such as Lenskart Solutions and Care Health Insurance, reports said. In 2025, Multiples announced a $430 million continuation fund to extend its investment in Vastu Housing Finance Corp. Ltd, Quantiphi Analytics Solutions Pvt. Ltd, and APAC Financial Services Pvt. Ltd.
Similarly, ChrysCapital announced a $700 million continuation fund to back National Stock Exchange of India, with the vehicle anchored by HarbourVest Partners LLC, LGT Capital Partners Ltd, Pantheon Ventures (UK) LLP, and other investors in 2024, Mint reported.
In May 2024, Mint had reported that other venture capital firms including IndiaQuotient, Kae Capital, Lightbox India Advisors, and WestBridge Capital Management were also considering similar moves.
Broadly, secondary transactions are gaining traction in India as several investors at the end of their fund's life cycle are seeking liquidity and gearing up to exit companies they have been invested in for some time.
Funds like Samara Capital and Eight Road Ventures have executed secondary sales in the past. Others such as Kenro Capital, The Neo Group, 360 One Asset and Oister Global in partnership with Tribe have launched dedicated secondary funds to capitalize on the opportunity.