Global private equity firm Siguler Guff is preparing to launch a $350-400 million India-focused continuation fund to maintain its stakes in four portfolio companies, according to livemint.com. The fund aims to back value-retail chain Baazar Kolkata, multi-specialty chain Sterling Hospitals, appliance maker Luker Electric Technologies, and medical device maker Relisys.
The continuation fund is being structured as Siguler Guff's current fund nears the end of its life cycle. This move allows the firm to retain ownership in these companies while providing liquidity to existing investors. The four portfolio companies represent diverse sectors, including retail, healthcare, appliances, and medical devices, highlighting the firm's broad investment approach in India.
Continuation funds have become a common strategy among private equity firms to extend their investment horizon in promising companies. Siguler Guff's plan reflects a growing trend in the Indian PE market, where firms seek to capitalize on the growth potential of their portfolio companies beyond the typical fund tenure. This approach also aligns with similar moves by other global PE players focusing on India’s expanding economy.
Siguler Guff's continuation fund is expected to close in the near term, with the firm finalizing terms and investor commitments. The fund will enable the firm to support the growth and expansion plans of Baazar Kolkata, Sterling Hospitals, Luker Electric Technologies, and Relisys, reinforcing its long-term commitment to these companies as reported by livemint.com.