ValueQuest Investment Advisors has launched a Rs 2,000 crore private equity (PE) fund aimed at advanced industrial industries such as aerospace, military, and energy transformation.

Key Highlights

• ValueQuest secures ₹2,000 crore commitments from domestic limited partners, strengthening its private equity investment platform.
• Fresh capital will support long-term growth strategies across high-potential sectors in the Indian market

The 100% rupee-denominated ValueQuest Tristar fund has exceeded its Rs 1,500 crore target size and initiated a Rs 500 crore greenshoe option. Within the current year, the fund hopes to conclude its fundraising.

The Mumbai-based firm claims that the fund seeks to finish capital deployment in 18 to 24 months and intends to support 8 to 12 companies with check sizes ranging from Rs 150 crore to Rs 400 crore. Businesses with established customer relationships, strong unit economics, and a demonstrated product-market fit will be the main focus.

According to ValueQuest, now is the moment to invest in innovative manufacturing sectors, since several companies in the industry are preparing to go public.

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Rangsons Aerospace, a precision manufacturing company serving prominent domestic and worldwide aerospace and defense clients, is one of the fund's previous investments. It has also invested in Waaree Energy Storage Solutions, a manufacturer of lithium-ion cells, battery packs, and energy storage solutions for the Indian and international markets.

In terms of defense investing, the fund was an early investor in defence public sector projects such as Mazagon Dock, Cochin Shipyard, HAL, BEL, and Garden Reach, long before policy momentum shifted in favor of the sector.