360 One to set up sector-focused private equity funds

livemint.com:

equity fund strategy, building a separate identity in an industry primarily known for broad sector investments. With assets under management crossing ₹23,000 crore or $2.6 billion, 360 One is one of the leading domestic private investors in India “On the PE side, our right to win an edge will be industry-focused thematic funds. And, so, you will see us being much more industry-led, going forward," said Sameer Nath, chief investment officer in his first formal interview since taking over as CIO and head of venture capital and private equity business.

“I don’t think we are set up to compete as generalist (on the PE side). The industry-led approach is really going to serve us well," he added. The first private equity thematic funds will be launched later this year, he added.

“We will be coming to the market with a healthcare fund. We are seeing tremendous interest in that space," he said. Nath said the company will reveal the specifics such as the fund size closer to the launch date.

The Indian PE market is now matured to absorb sector focussed funds and major sectors don’t hold a concentration risk anymore, he added. It will focus on healthcare, financial services, consumer as well as technology. “We’re not saying that we’re going to pick some new esoteric sector; they are probably most active sectors for VCs and PEs.

There is traditional and digital in all of these segments -- we’ve done a lot of homework on them." The firm already has a fund investing in tech-first companies such as Byju’s, Upgrad and Pharmeasy. It invested in Series B and Series C stages. For financial services, it may not focus much on fintech but will choose areas with less regulatory overhang.