InCred planning second PE fund of up to ₹1,500 crore

The firm plans to increase its average deal size and tap a more institutional pool of investors

- Priyamvada C

After closing its maiden private equity fund at ₹575 crore earlier this year, InCred Alternative Investments is preparing to raise a significantly larger second fund of ₹1,000-1,500 crore, a top executive told Mint. The firm plans to increase its average deal size and tap a more institutional pool of investors for this fundraise.

"We will try to inject larger amounts from the second fund onwards and are targeting an average ticket size of ₹140-150 crore across 7-8 companies, up from ₹75-85 crore in the first fund," said Vivek Singla, managing partner at InCred Alternative Investments, told Mint in an interview.

The fundraising process will start in the next quarter, though final timelines and fund size will depend on market conditions, he added.

InCred's second fund will seek capital from both domestic and international investors, with domestic investors expected to contribute about 75% of the corpus.

This marks a slight shift in its limited partner (LP) mix. In the first fund, while domestic investors formed the majority, most international investors were non-resident Indians (NRIs).