Now Reading: Siguler Guff plans $350-400 mn continuation fund for four India bets
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Siguler Guff plans $350-400 mn continuation fund for four India bets
Siguler Guff plans $350-400 mn continuation fund for four India bets
Global private equity firm Siguler Guff is raising a $350-400 million continuation fund to retain its stakes in four Indian portfolio companies: value-retail chain Baazar Kolkata, multi-specialty chain Sterling Hospitals, appliance maker…
Global private equity firm Siguler Guff is raising a $350-400 million continuation fund to retain its stakes in four Indian portfolio companies: value-retail chain Baazar Kolkata, multi-specialty chain Sterling Hospitals, appliance maker Luker Electric Technologies, and medical device maker Relisys. Continuation funds allow PE firms to keep high-performing assets beyond a fund's standard 10-12 year life while letting existing limited partners exit for cash.
The move comes a week after Siguler announced a $500 million India-focused fund, its first dedicated vehicle for the country. The new continuation fund will help some limited partners of its earlier emerging markets fund, worth about $238 million, repatriate capital. Similar funds have been raised in India by ChrysCapital, Multiples, and Kedaara Capital as the secondary market gains traction. Siguler Guff declined to comment, the portfolio companies did not respond to queries.
Indian Opinion Analysis
Continuation funds are a structural workaround for private equity's fixed-term model. A standard fund has a life of 10-12 years, forcing a sale even if the asset is still growing. By rolling the holding into a new vehicle, the manager keeps running the investment while offering existing limited partners a cash exit. In India, this market is still small but accelerating. ChrysCapital's $700 million continuation fund for its NSE stake, closed last year, was one of the largest. Kedaara and Multiples have done similar deals. The trend reflects a broader shift: global limited partners, particularly US and European pension funds and endowments, are repatriating capital and demanding distributions. For Indian promoters backed by PE money, these funds offer a path to stay private longer without an IPO or distressed sale.
Source: livemint.com
This brief was synthesised by AI from the source linked above.
