TLDR:
– Peak XV Partners, formerly known as Sequoia Capital India, is launching a permanent investment vehicle backed by its internal pool of capital.
– The Peak XV Anchor Fund will allow partners and senior leaders to invest in a wider set of opportunities, including public market companies and venture funds in different regions.
Peak XV Partners to Launch Permanent Investment Vehicle
Peak XV Partners, formerly known as Sequoia Capital India, is setting up a new permanent capital vehicle called the Peak XV Anchor Fund. This fund will be backed by the firm’s internal pool of capital, allowing partners and senior leaders to invest in various opportunities across regions, strategies, and sectors. The fund will have a small initial size that will grow over time.
Unlike traditional venture capital and private equity funds with fixed tenures, the Peak XV Anchor Fund will operate as a permanent capital vehicle, meaning its profits will be reinvested into the fund. This will provide the firm’s partners with the flexibility to expand and invest across different regions and sectors without the pressure of returning capital to limited partners.
The fund was announced during a meeting of global investors in New Delhi, and is expected to commence investing in the third quarter of 2024. The fund will focus on investments in different asset classes, including other global funds and listed securities.
Peak XV Partners has a strong track record of investing in startups, with over $9 billion worth of assets under management. The firm’s partners and senior leaders have already invested over $500 million in their own funds over the last decade, and this initiative aims to institutionalize this practice.
The launch of the Peak XV Anchor Fund reflects a broader trend in the venture capital industry towards permanent capital vehicles, which offer long-term funding and greater flexibility for investment decisions.
