OAKS Asset Management, a mid-market private equity fund aims to raise Rs 1,000 crore for its consumer fund which it launched in early 2021. The new sum is higher than the initial target of Rs 700 crore.
The first close for OAKS Consumer Fund, along with its first investment in millet-based snacks company Troo Good, is nearing completion by July 31, 2022, a statement noted.
According to the PE player, investors are increasingly appreciative of the power of high-quality profitable businesses with sustainable cash flows versus cash-burn-oriented businesses that require serial capital raises. Further, record low fixed income yields and volatility of real estate as an asset class are further motivating investors to move in this direction.
Vishal Ootam, Founder & CEO, OAKS Asset Management, said, “We have always had a deep conviction in the Indian consumer story and believe that as a market, India continues to offer multiple yet simple penetration and growth opportunities.”
The OAKS Fund 1 portfolio includes companies such as Hero Electric, CredAble, Foodlink, Shree, and InCred.
Vivek Anand PS, Founder & MD, OAKS Asset Management, said, “We do not invest in businesses that are dependent on serial fund raises nor do we invest in businesses that operate in the ‘Winner takes All’ categories. As a result, we are confident that we will continue to deliver on our promise and conviction like we have done over the past decade.”
According to OAKS, at least two of the five businesses it has invested in are expected to list through an IPO in the next 18 to 24 months.
