Avendus announces first close of Rs 850 Cr for Future Leaders Fund III

Avendus Future Leaders Fund III (FLF III) has announced its first close, securing commitments of Rs 850 crore ($100 million).

With a 7-year track record, FLF III builds on a proven strategy of its predecessor funds, focusing on investing behind established and emerging market leaders in the private space. Leading domestic family offices and Indian institutions participated in this first close.

FLF backs high-growth market-leading companies and category-creating businesses. By leveraging Avendus’ deep domain expertise and extensive relationship network with entrepreneurs and financial sponsors, it offers access to a differentiated portfolio while also providing multiple exit optionalities. Its investors have also been offered co-investment opportunities in portfolio companies.

FLF I and II portfolio companies include Lenskart, Bikaji, Juspay, SBI General Insurance, and Sagility Technologies, amongst others. It states that FLF I has returned over 100% of investor capital within 4 years, while FLF II has recently been fully deployed. FLF III is in the process of finalizing its first investment in the healthcare sector.

Registered as a Category-II Alternative Investment Fund (AIF) with SEBI, FLF III is targeting a raise of Rs 1,500 crore with an additional green shoe option of Rs 1,500 crore. The Fund plans to make 12-14 investments, with an average ticket size of INR 150–300 crore, in sectors such as financial services, healthcare, technology, consumer goods, and manufacturing.