Active Stocks
Thu Mar 28 2024 15:59:33
  1. Tata Steel share price
  2. 155.90 2.00%
  1. ICICI Bank share price
  2. 1,095.75 1.08%
  1. HDFC Bank share price
  2. 1,448.20 0.52%
  1. ITC share price
  2. 428.55 0.13%
  1. Power Grid Corporation Of India share price
  2. 277.05 2.21%
Business News/ Companies / Oister Global to invest 4,500 crore in PE/VC funds in next two years
BackBack

Oister Global to invest ₹4,500 crore in PE/VC funds in next two years

The Gurugram-based firm invests in private market funds, with a focus on venture capital, venture debt, private equity, and private credit.

The company has been investing through its private equity fund Oister India Pinnacle fund and is planning to launch a private credit fund in the next 3-4 months. (istockphoto)Premium
The company has been investing through its private equity fund Oister India Pinnacle fund and is planning to launch a private credit fund in the next 3-4 months. (istockphoto)

MUMBAI : Oister Global, which invests in PE and VC funds, is looking to deploy 4,500 crore in private market funds in the next two years, a top executive said.

The Gurugram-based firm, which is also an investor in Blume Ventures, will deploy close to 1,000 crore by the end of this year, and 3,500 on top of that in the next year, said Rohit Bhayana, co-CEO & co-founder, Oister Global.

“When we talk about these numbers, we're talking about both debt and equity. But on the equity side, it is venture capital, growth equity, private equity. On the debt side, both startup debt, which we call venture debt, and SME debt, which we call private credit. So, fundamentally, if you kind of look at these numbers, we are looking at the basket of five asset categories."

The company has been investing through its private equity fund Oister India Pinnacle Fund, and plans to launch a private credit fund in the next 3-4 months, according to Bhayana, who said the 1,000 crore investment this year will be around 70% in equity and 30% in debt.

Oister Global invests in private market funds, with a focus on venture capital, venture debt, private equity, and private credit.

Talking about the investment strategy this year, David Wilton, chief investment officer at Oister Global, said that despite all the factors for intervention, the fundamentals of the strategy are the same.

“Because it's all about the Indian growth story, the Indian innovation story. And that's a story that's got deep roots and will continue, I think, for the next decade. Regardless of the rest of the noise and the rest of the world."

“So, what we're doing, as I said, is identifying at each of the different stages of VC private equity – early stage, growth stage, private equity. Those GPs (general partners - who make decisions for a fund) who have demonstrated that they can generate top half returns, because the underlying strategies that they're pursuing are basically to identify and grow good companies," said Wilton.

He added that in the private market, it's a very similar focus year after year. “Now, what you do want to try and catch up to, for example, say artificial intelligence, that's clearly going to be a big macro trend. So, clearly, we're looking for those GPs who have some insight and some ability to intelligently address that."

Bhayana said India isn't as expensive as it looks, whereas the rest of the world is at best growing at average or below average, barring the US. “Effectively, what that means is, when Japan is expensive, when the UK is getting expensive in terms of its stock market, it's getting very expensive, When the US is getting very expensive. India could also be in a bubble but what we feel is that with strong fundamentals, clear policy direction, a lot of consumption, a lot of innovation, and underlying growth coming in, the story for India is pretty solid."

Bhayana added that the Indian market is leading the way in democratization of venture capital and private equity. He attributes it partly to the fact that India always had a retail funding base, while the US market started with institutions and has only got retail recently. He said, “It is partly because of that history of starting with a retail, significant retail funding base, the regulator comes from that background and wants things transparent and safe for retail people. So in a way, I think India's going to end up leading the world in this."

Wilton also noted that chasing unicorns is a strategy that’s not going to work anymore for alternative investment funds. “Firstly, following unicorns from start to finish is incredibly difficult. Very few people manage to do it... The rate of unicorn creation has come down an awful lot, and it's likely to stay down. So, anyone whose strategy was reliant on unicorns, probably that's not the best strategy now. Our focus is to find people who are not reliant on unicorns to create good returns."

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Corporate news and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less
Published: 17 Mar 2024, 05:10 PM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App

Chat with MintGenie