Avendus Future Leaders Fund III (FLF III) has successfully secured its first close, raising Rs 850 crore ($100 million) in commitments. The latest fund builds upon the success of its predecessor funds, which have established a strong track record over the past seven years, with a focus on high-growth companies and market leaders in both established and emerging sectors within the private space.
The first close saw significant participation from leading domestic family offices and prominent Indian institutions, highlighting the confidence in the fund’s investment strategy. FLF III aims to invest in high-growth, market-leading companies and category-defining businesses, leveraging Avendus’ extensive domain expertise and its deep relationships within the entrepreneurial and financial communities.
FLF III offers a differentiated portfolio, providing investors with multiple exit opportunities, alongside co-investment opportunities in the portfolio companies. Notable companies from FLF I and II include industry leaders such as Lenskart, Bikaji, Juspay, SBI General Insurance, and Sagility Technologies. FLF I, in particular, has delivered impressive results, returning over 100% of investor capital within four years, while FLF II has been fully deployed.
Currently, FLF III is in the process of finalizing its first investment, focusing on the healthcare sector. Registered as a Category-II Alternative Investment Fund (AIF) with SEBI, FLF III aims to raise a total of Rs 1,500 crore, with an additional green shoe option of Rs 1,500 crore. The fund plans to make 12-14 investments, targeting sectors including financial services, healthcare, technology, consumer goods, and manufacturing, with an average ticket size ranging from INR 150–300 crore.
FLF III’s strategic approach and robust support infrastructure make it an attractive vehicle for investors looking to tap into India’s dynamic growth landscape.
