With $2.2 bn new fund, ChrysCapital signals appetite for riskier bets
“We saw some other firms taking risks that we were hesitant to take at the time. But they worked out really well for them. So now we’re looking at whether there are certain situations where we too can take more risks,” said Chatterjee, who leads fundraising and limited partner (LP) relationships.
He said the firm’s risk appetite increases where ChrysCapital can support companies with weaker operations, step in, fix them and create value.
This comes at a time when PE firms are actively looking to acquire traditional, legacy businesses that have the potential to generate higher returns post-restructuring.
Private equity firms generally target “an alpha of at least 4-5% above public market returns,” said Bharat Anand, senior partner at law firm Khaitan & Co.
Strategies vary by industry, deal size and capabilities. “Managers are fundamentally driven by the need to maximize returns and will not shy away from restructuring at the time of investment or exit if it improves results,” he added.
Anand added that restructuring deals, often routed through feeder funds that pool investor money in a master fund, require a large stake and strong control rights to justify higher costs and tax exposure.
While Chatterjee said India is now ripe for acquisitions and more promoters are willing to give up control, the firm is also open to restructuring in minority deals.
“Even in a minority deal, if the entrepreneur acknowledges the problems and is committed to solving them, that’s a business we might consider supporting,” he said.
“The need for restructuring is a means to an end, but not an end in itself,” Anand said. Whether minority or purchasing, returns drive the decision.
Production in the picture
ChrysCapital is back in production after about five years, Chatterjee said. The firm stepped back from the sector around 2019-20, when information technology (IT) services, financial services and healthcare offered better risk returns.
This has changed. Supply chains are shifting out of China, India’s workforce is expanding, and the government is pushing domestic production. “The next phase of India’s growth must be production-based,” he said.
The company is evaluating agreements electronic manufacturing servicescomponents and data center supply chains — “the picks and shovels of the AI revolution.”
He’s already made a commitment. In September 2025, ILJIN Electronics India, a subsidiary of Amber Group, ₹1,200 crore from ChrysCapital and InCred Growth Partners.
A. money control ChrysCapital has emerged as the leading contender for a significant minority stake in Nash Industries, the report said.
change in posture
ChrysCapital, one of India’s oldest indigenous PE firms, invests in enterprise technology, financial services, healthcare and consumer sectors with major companies such as National Stock Exchange, Hero FinCorp. theobroma and İntaş Pharma.
The Ashish Dhawan-based company has raised $5 billion from its first nine funds since its founding in 1999, invested nearly $4.5 billion in more than 100 companies and raised nearly $7 billion in nearly 80 exits. It has completely exited its top six funds.
ChrysCapital currently manages 12 funds, including 10 private equity funds, one public markets fund and one continuation vehicle. A continuation vehicle allows the life of a promising asset to be extended.
Its latest fund, the $2.2 billion ChrysCapital X, is 60% larger than the $1.35 billion Fund IX. The firm is distributing Fund X while exiting Fund VIII. Peers such as Kedaara Capital have also stepped up fundraising efforts, with the $1.73 billion Fund IV closing in 2024.
The latest fund has seen a significant shift in its LP base. Just over $1.7 billion came from global investors, while nearly $300 million came from domestic institutions and family offices. This represents a significant shift from previous funds, where domestic capital was “almost nil” and the strategy was “100 per cent offshore”.
Japan came to the fore. ChrysCapital added “six or seven LPs close to $200 million,” up from a single LP in the previous fund.
“China has become a difficult place to invest. People talked about this shift even in Fund IX during Covid, but then capital did not shift to India, it remained in the US or Japan,” Chatterjee said. “Now global LPs say where in Asia if not China? The flavor of the year for LPs has been India and Japan.”
The firm also added Middle East family offices, a new family office based in France and a large U.S. public pension fund. Many of these investors are going to India for the first time.
