Private Equity Fund by ValueQuest Investment Advisors

ValueQuest Investment Advisors has successfully established a private equity (PE) fund amounting to Rs 1,500 crore, emphasising investment in advanced manufacturing sectors like aerospace, defence, and energy transition. The fund, known as ValueQuest Tristar, is entirely rupee-denominated and has exceeded its initial target size of Rs 1,500 crore by utilising a greenshoe option of an additional Rs 500 crore. It is anticipated that fundraising will conclude within the current calendar year.

Investment Plans and Strategy

According to the Mumbai-based firm, this fund intends to support between 8 and 12 companies, with investment amounts varying from Rs 150 crore to Rs 400 crore per company. The company expects to finalise its capital deployment within a timeframe of 18 to 24 months. The focus will be on businesses that exhibit a strong product-market fit, positive unit economics, and established customer relationships.

Market Timing and Opportunities

ValueQuest highlights that the present moment is opportune for investing in advanced manufacturing sectors, particularly as many companies within this domain are considering the IPO market for funding.

Current Investments Made

The fund has already made significant investments, including in Rangsons Aerospace, a company specialising in precision manufacturing that caters to both prominent domestic and international aerospace and defence clients. Additionally, it has provided support to Waaree Energy Storage Solutions, a manufacturer of lithium-ion cells, battery packs, and energy storage systems tailored for both Indian and international markets.

Defence Sector Initiatives

In the area of defence investing, the fund has made early investments in notable defence public sector undertakings such as Mazagon Dock, Cochin Shipyard, HAL, BEL, and Garden Reach, prior to the policy shifts that have emerged in favour of the sector.