The Chennai-based firm pivots its strategy towards debt financing & domestic capital amidst a cooling global venture market.
Anicut Capital plans a ₹3,000 crore fundraise with a heavy focus on debt investments & domestic capital.
Chennai-based alternative investment firm Anicut Capital is shifting its strategic focus. The company plans to raise a staggering ₹3,000 crore. Consequently, it aims to establish four new funds shortly. The firm expects to conclude this process within 18 months.
Managing Partner IAS Balamurugan noted an interesting structural division. Three of these upcoming funds will exclusively target equity. Meanwhile, the fourth will operate as a private credit fund. Furthermore, the firm has already secured ₹600 crore from partners.
Debt investments will consume nearly 60 per cent of this capital. The remainder will support early-stage, late-stage, and Series A equity funds. Therefore, the strategy highlights a strong preference for secure returns. Domestic institutions and family offices are showing substantial interest.
Anicut strictly prefers businesses with positive cash flow dynamics. Furthermore, the firm actively avoids companies with heavy reliance on credit. Balamurugan stated that equity disbursements will average ₹80 crore. Conversely, debt allocations could reach up to ₹100 crore per deal.
Global investor appetite for Indian assets has visibly cooled recently. Geopolitical tensions and macroeconomic pressures are driving this notable shift. Consequently, India faces increased competition from other attractive global markets. Balamurugan expects domestic capital pools to naturally fill this void.
The venture capital ecosystem is adapting to a sluggish IPO market. Therefore, companies unable to go public seek private capital instead. This dynamic offers lucrative late-stage discounts to patient investment firms. Anicut plans to capitalise heavily on these emerging market opportunities.
The firm currently manages assets worth roughly ₹4,500 crore. Moreover, it recently deployed nearly all of the capital from its fourth growth fund. Anicut also intends to retain its stake in Milky Mist. The popular dairy brand is preparing to go public.
(Source: businessline)
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