xponentia Capital Partners Funding: Xponentia private equity fund raises Rs 365 crore in 1st second funding close

Homegrown private equity fund targeting the mid-market Exponentia Capital Partners raised Rs 365 crore in the first close of his second fund – Opportunity Fund Xponentia 2.

The PE firm hopes to raise Rs 750 crore by the end of the fund.

The capital comes from Indian corporations, family offices and high net worth individuals, with most investors in his first fund doubling their investment.

The fund is expected to close permanently by December.

The company founded PR Srinivasan as well as Devinjit Singhraised its first fund of Rs 351 crore in 2019. Together with its limited partners or sponsors who jointly invested in the deals, the firm invested a total of Rs 450 crore from its first fund.

His portfolio includes the Flight Simulation Technology Center or FSTC, Barbeque Nation, R4Rabbit, Easy Home Finance, Medsource and Altigreen.

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He has made about eight investments from fund I and expects to receive about 8-10 investments from the second. The size of the checks, taking into account the co-investment of deputies, can reach 100 crores of rupees.

The firm supports companies in sectors such as financial services, healthcare, consumer and business services that have a proven business model and are on track to generate around 30-35 crore earnings before interest, taxes, depreciation and amortization (Ebitda). .

In August 2021, the firm exited its investment entirely when
Delivery acquired Spoton Logistics. He also partially sold his stake in Barbeque Nation after listing on exchanges in April 2021.

“The results of our fund depend on the realized exits, and not just on the estimated allowances. In fact, the Allocation to Paid-In Capital or DPI is over 90% in XOF-1. In addition, the timely exits allowed us to reinvest and deploy 100% of the fund, closing the gap between gross and net internal rate of return,” said Srinivasan, managing partner at Xponentia Capital.

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Xponentia Capital looks to raise $100 million for second fund

Domestic institutional investors and family offices are increasingly investing in funds that support companies in the early stages of growth, indicating a greater risk appetite among this asset class.

From angel seed funds to Special Opportunities to Distress funds, domestic rupee-denominated investors now have significantly more options for funds that are generally considered risky.

Not only has the set of investment opportunities expanded, but so has the size of the funds. The investor base is expanding, from asset management firms, family offices to large single investor venture capital funds.

“Internal investors greatly underestimate classic private equity and alternatives as an asset class, and both family offices and institutions are looking to invest in supporting managers with a track record and demonstrated performance. We are absolutely confident that we will reach and likely exceed the fundraising goal for our second fund in the next few months,” said Singh, managing partner of Xponentia Capital.

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