Carpediem Capital has raised Rs 700 crore for its second fund and the mid-market PE firm intends to invest it across 7-8 companies in the next 2-3 years.
“The fund size was Rs 500 crore, but with additional funds coming in, the total capital that can be deployed has risen to Rs 700 crore. The firm has also made two investments from the second fund, one in Sindhuja Microcredit, a microfinance company, and the other in Fornax Consulting, a staffing company,” a source close to the development told FE.
Carpediem Capital has committed about Rs 120 crore for these two investments and at least two more in the consumer sector, the source added.
When contacted, the PE firm declined to comment.
The co-investors in the fund include domestic institutional investors, high net-worth individuals and family offices in India and aboard. This follows a complete of deployment of its first fund through which the company raised a total corpus of Rs 203.8 crore with a co-investment of Rs 97.5 crore.
The PE fund typically stays invested in a company for about 3-6 years and under its Fund-I, the exit strategies included strategic and financial exits. However, the exit strategy for Fund-II includes potential initial public offerings as its portfolio of investment firms have a significant amount of profit and Ebitda.
Carpediem Capital has about $100 million of assets under management and it typically owns more than 26% in a company, and at times would also take a majority stake in a firm.
Its Fund-I portfolio companies include firms in the affordable consumer products space such Adinath Agro, Biryani Blues, 1-India Family Mart and Sukkhi. It has also made investments in value services companies such as ColMed, Flipspaces, Sindhuja Microcredit and Yaantra. Carpediem Capital exited Yaantra through a strategic acquisition by Walmart-owned Flipkart Group in February 2022.