With $2.2 bn fund, ChrysCap has appetite for riskier bets

MD Saurabh Chatterjee details shift in global LP base, renewed focus on manufacturing

- Mansi Verma

Saurabh Chatterjee, managing director, ChrysCapital.

After raising its largest-ever private equity (PE) fund of $2.2 billion, ChrysCapital is now open to taking higher-risk bets, said Saurabh Chatterjee, managing director (MD) at the firm.

“We've seen some other firms take risks that, at the time, we weren't comfortable taking. But they worked out really well for them. So now we're looking at whether there are specific situations where we, too, can take more risk,” said Chatterjee, who leads fundraising and limited partner (LP) relationships.

He said the firm’s risk appetite is rising in situations where ChrysCap can back companies with weaker operations, step in, fix them and create value.

This comes at a time when PE firms are actively scouting for buyouts of traditional, legacy businesses that have the potential to generate higher returns after restructuring.

PE firms typically target “an alpha of at least 4-5% above public market returns,” said Bharat Anand, senior partner at law firm Khaitan & Co.

Strategies vary by sector, deal size and capabilities. “Managers are fundamentally driven by the need to maximize returns and will not shy away from restructuring at the time of investment or exit”, if it improves outcomes, he added.