Oster Global, Tribe Capital India to launch $500 million secondary focused fund
Mumbai: Home Investment Company Oyster Global and the local arm of a US-based venture capital firm Tribal capital It has partnered to launch a $500 million fund that will return secondary. Early deals. In a secondary transaction, shares of a company change hands between investors and no new capital is added to a firm. The investment will be spread over two years, the two companies said in a joint statement on Monday.
Progress comes when Secondary transactions Earlier this year, Temasek and Fidelity Management & Research Co. bought $200 million worth of Lenscart shares in a secondary deal, while Verlinvest and Goldman Sachs sold parts of their holdings in beauty startup Purplle to the Abu Dhabi Investment Authority (ADIA). were sold to The company's $120 million funding round through primary and secondary transactions. In the first half of 2024, 62% of startup deals valued between $50 million and $500 million in the domestic market were secondary transactions or buyouts, said Raj Sinhail Juneja, co-founder of Tribe Capital India.
In India, the secondary transaction market is still in its nascent stage and has room to grow. Globally, the secondary market is estimated at over $130 billion. “The launch of this franchise seeks to capitalize on growing demand and bring unparalleled expertise to the table. Secondary investors will be key entry points into the private markets just as IPOs (initial public offerings) have become public. has revolutionized access to markets,” said Sandeep Sinha, Co-CEO of Oister. Juneja added that as companies with strong business fundamentals prepare for potential IPOs, demand for secondary transactions is expected to increase. A bunch of Indian startups like Swiggy, MobiKwik are lining up for public listing.
The $500 million fund will be modeled as an Alternative Investment Fund (AIF). Oyster Global and Tribe Capital will invest their own capital in the AIF and will also raise capital from other investors which will then be used to fund secondary deals.
Progress comes when Secondary transactions Earlier this year, Temasek and Fidelity Management & Research Co. bought $200 million worth of Lenscart shares in a secondary deal, while Verlinvest and Goldman Sachs sold parts of their holdings in beauty startup Purplle to the Abu Dhabi Investment Authority (ADIA). were sold to The company's $120 million funding round through primary and secondary transactions. In the first half of 2024, 62% of startup deals valued between $50 million and $500 million in the domestic market were secondary transactions or buyouts, said Raj Sinhail Juneja, co-founder of Tribe Capital India.
In India, the secondary transaction market is still in its nascent stage and has room to grow. Globally, the secondary market is estimated at over $130 billion. “The launch of this franchise seeks to capitalize on growing demand and bring unparalleled expertise to the table. Secondary investors will be key entry points into the private markets just as IPOs (initial public offerings) have become public. has revolutionized access to markets,” said Sandeep Sinha, Co-CEO of Oister. Juneja added that as companies with strong business fundamentals prepare for potential IPOs, demand for secondary transactions is expected to increase. A bunch of Indian startups like Swiggy, MobiKwik are lining up for public listing.
The $500 million fund will be modeled as an Alternative Investment Fund (AIF). Oyster Global and Tribe Capital will invest their own capital in the AIF and will also raise capital from other investors which will then be used to fund secondary deals.