Trifecta Capital is set to expand its business through the launch of its first equity fund after pioneering its debt fund model. The equity fund, Trifecta Leaders Fund-I, will look at late-stage equity investments in Indian startups, Rahul Khanna, managing partner of Trifecta Capital told Mint.
Further, the firm is aiming to raise Rs 1,500 crore ($200 million), including a greenshoe option of Rs 300 crore, for this fund.
Khanna told the publication that the firm is aiming to achieve the first close of Rs 600 crore by June in its first equity fund to invest in technology companies looking to go public in one-three years. The firm expects its portfolio to have 8-10 companies through $20-30 million per investment, the news report added.
“We know that there are a lot of companies that are in the back end of their journey, which means that they are 12-36 months away from a liquidity event," Khanna was quoted as saying.
"Generally, that is a series D, E, F type of situation and is a structural gap in the ecosystem. Founders were telling us that they need help with secondary transactions to clean up their cap table, but there is no structured, predictable and easy way to do this. There is enough critical mass of opportunity to merit more late-stage VC activity," he added.
Currently, Trifecta Capital has digital payments app BharatPe, consumer product companies including Box8, Furlenco, Livspace.com, Paper boat and Zivame on its portfolio. The fund has reportedly invested in over 70 companies since its launch in 2014.