Client Associates Secures Rs. 500 Crore Funding for Alternate Fund Targeting Startups

Wealth management firm Client Associates raised Rs 300 crore for its alternate fund, CAAF, targeting startups. The fund aims to reach Rs 500 crore with an additional Rs 200 crore in the current fiscal. The fund targets early to growth-stage startups in consumer, financials, and related sectors. Client Associates manages USD 5.5 billion in assets and plans to deploy the fund over four years. CAAF will invest Rs 10-50 crore per company in a portfolio of 12-15 startups, exploring potential pre-IPO opportunities for value creation.

Wealth management company Client Associates on Tuesday said it raised Rs 300 crore for its maiden alternate fund CAAF, meant for investment in startups, and is looking to add another Rs 200 crore in this fiscal.

The first round of funding saw participation from domestic family offices and ultra high net-worth individuals (UHNIs), primarily comprising existing relationships of Client Associates.

''With the first close at about Rs 300 crore of the company's AIF Cat II, Client Associates is now targeting to achieve overall commitments of up to around Rs 500 crore by exercising the green shoe option of Rs 200 crore and concluding the same during the ongoing financial year,'' the firm said in a statement.

Client Associates said it has assets under advisory (AUA) of about USD 5.5 billion and serves over 1,100 relationships with HNIs and UHNIs families in India.

''CAAF (Client Associates Alternate Fund) represents a significant milestone for us as we venture into the realm of asset management,'' Client Associates co-founder Himanshu Kohli said.

The company has five years for deployment of the fund but it plans to deploy within four years from the first close, Kolhi said.

CAAF's investment strategy focuses on identifying and supporting startups in the early to growth stage predominantly in the consumer and consumer-related sectors, along with financial services.

''The fund aims to construct a robust portfolio comprising 12-15 carefully selected companies, with planned investments ranging from Rs 10 to Rs 50 crore per company. Furthermore, CAAF will selectively explore later-stage opportunities (pre-IPO) where it feels there could be value creation opportunities for its Limited Partners (LPs),'' the statement said.

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