OAKS Asset Management, a leading mid-market Private Equity Fund, is on course to raise INR 1,000 crore for The OAKS Consumer Fund launched in early 2021. Investors are increasingly appreciative of the power of high quality profitable businesses with sustainable cash flows versus cash-burn oriented businesses that require serial capital raises. Record low fixed income yields and volatility of real estate as an asset class are further motivating investors to move in this direction. This is resulting in increased allocations from existing investors and sign-ups from several new investors.
The OAKS Fund 1 portfolio, having emerged stronger out of Covid has vindicated the OAKS investment thesis of backing experienced founders building strong consumer brands and catering to monster sized markets in India.
Hero Electric – the largest Electric Vehicles manufacturer in India is on track to raise a large round of capital in this quarter to build capacity and further cement its leadership position. This round is expected to close at a meaningful premium to the last round.
CredAble, an award-winning AI-powered technology platform, has been marked up by close to 11x of the original investment valuation and a leading domestic bank has signed up to invest in the company. CredAble already partners with several of the largest domestic and foreign banks operating in India.
The first close for OAKS Consumer Fund, along with its first investment in Troo Good (India’s largest millet-based snacks company) is nearing completion by July 31st 2022. The fund raise is expected to close at INR 1,000 crore instead of the original estimate of INR 700 crore when fundraising had started.
Vishal Ootam, Founder & CEO, OAKS Asset Management, said, “We have always had deep conviction in the Indian consumer story and believe that as a market, India continues to offer multiple yet simple penetration and growth opportunities. For us to be to be in the position that we are in is not only a vindication of our investment philosophy but also the resilience of India’s consumer story.”
Airing his thoughts, Vivek Anand PS, Founder & MD, OAKS Asset Management, said, “In sharp contrast to the otherwise sombre commentary that one might hear about the investment climate around, we have witnessed some of the most exciting times in our journey over the past 12-18 months. True to our philosophy, we at OAKS Asset Management have always invested in traditional consumer brand stories driven by seasoned entrepreneurs or business families that focus on profitable growth. We do not invest in businesses that are dependent on serial fund raises nor do we invest in businesses that operate in the ‘Winner takes All’ categories. As a result, we are confident that we will continue to deliver on our promise and conviction like we have done over the past decade.”
Kenneth Serrao, Founder & CIO, OAKS Asset Management said, “For us to eventually be ready with a figure that’s more than 40% higher than what we’d initially thought is, perhaps, a tribute to our strong resolve and faith in our investment philosophy. We are thankful to our investors who continue to put their faith in us even as we look to leverage our multi-year experience of working with seasoned founders to provide our portfolio businesses with strategic inputs and assist them with strengthening their organizational systems, controls, processes and governance.”
Apart from Hero Electric, CredAble and Troo Good, OAKS has also invested in Foodlink (India’s largest luxury catering company), Shree (a prominent women’s ethnicwear company) and InCred (a Mumbai-based NBFC).
Each of these investments has weathered the last 2 years strongly and 4 of the 5 businesses have been marked up. 2 of the 5 businesses are expected to list through an IPO in the next 18 to 24 months.
About OAKS Asset Management:
OAKS Asset Management is a prominent Indian consumer focused private equity fund. The team has built a track record of successfully backing experienced entrepreneurs who are building some of the largest and most scalable businesses in India. The OAKS Connected Capital® network includes some of the most prominent investors and family offices in India and across the globe. OAKS is often the first external capital in most of their portfolio companies. The team specializes in providing long-term growth capital and is actively involved in working with their portfolio businesses.
OAKS is headquartered at Nariman Point, Mumbai and is regulated by the Securities and Exchange Board of India