Indian private equity firm Kedaara Capital is poised to make headlines with its latest achievement: raising a staggering $1.7 billion for what will become the largest private equity fund in India’s history, as reported by Reuters. This landmark move comes amidst a period of remarkable growth in India’s stock markets, reflecting a robust interest in the nation’s rapidly expanding economy. Surpassing its previous fund raised in 2021 by a significant margin, this fourth fund marks a remarkable leap, being 54% larger.

Anticipation surrounds the forthcoming fund, which is expected to draw approximately 80% of its capital from existing investors, while the remaining 20% will be sourced from new contributors, including prominent institutions such as the Cleveland Clinic and the University of Minnesota. With a diverse investment strategy, the fund aims to deploy capital across various sectors, spanning banking, healthcare, consumer goods, and software.

This approach encompasses both minority stakes and complete buyouts, ensuring a balanced and diversified investment portfolio. This development follows a backdrop of geopolitical tensions and shifting market dynamics, driving investors to seek diversification away from China. Notably, India’s share of Asia-Pacific private equity deals surged to 23% last year, while China’s share plummeted to a nine-year low of 31%.

Established in 2011 by former executives of Temasek and General Atlantic, Kedaara Capital has solidified its position as a prominent player in the Indian investment landscape. Previous funds raised by the firm total $2.4 billion, with investments spanning 27 Indian companies, including well-known entities like Lenskart and Mahindra Logistics. A key component of Kedaara’s success lies in its strategic approach to stake sales, which have consistently yielded significant profits, thereby delivering substantial returns to its investors.