ChrysCapital, a prominent Indian private equity firm, has successfully raised $700 million in new funds. This significant capital injection will enable the firm to maintain its ownership stake in the National Stock Exchange (NSE) of India through a self-buyout.
ChrysCapital, recognized as one of India's leading private equity firms with over $4 billion in investments, secured the funding primarily from renowned investors such as HarbourVest (US), Pantheon Ventures (Europe), and LGT Capital Partners (Europe).
The newly established "continuation fund" serves a strategic purpose. It allows ChrysCapital to retain its NSE stake, initially acquired in 2016, while facilitating the exit of older investors through the sale of their shares to new investors.
Private equity firms typically operate within an 8-10 year investment horizon, aiming to sell their holdings and return capital to their backers. However, in this instance, ChrysCapital has opted to maintain its NSE investment, recognizing the exchange's strong position as one of India's top two stock exchanges and the world's largest derivatives exchange.
The NSE has experienced remarkable growth in recent years, fueled by India's emergence as a preferred destination for foreign investors seeking exposure to the world's fastest-growing major economy. This surge in investor interest has significantly boosted the performance of Indian stock exchanges, including the NSE.