Trifecta Capital marks first close of Rs 2,000 crore fund IV

Venture debt firm Trifecta Capital has announced the first close of its fourth fund after raising nearly half of the total targeted corpus of Rs 2,000 crore, which includes a greenshoe option of Rs 500 crore.

The first close serves as a significant milestone for venture capital and venture debt firms, allowing them to start deploying capital from the fund. The fund plans to invest its new capital pool in over 100 companies during its term.

“We will continue to raise for the next six to nine months and hopefully do a final close by the tail end of the year, around September-October,” Rahul Khanna, managing partner at Trifecta Capital, said in an interaction with Fe.

Trifecta began raising its fourth fund in August last year. Before that, the firm closed its third debt fund at Rs 1,777 crore in 2023, and till date, it has raised Rs 5,300 crore across four venture debt funds and one growth equity fund. Trifecta has invested in startups such as Zepto, Meesho, BigBasket, BlueStone, Country Delight, Rebel Foods, and more.

Venture debt is a type of loan offered to Series A-and-above startups with institutional backing, and includes equity warrants in addition to the debt component, with a repayment period of two-three years. These equity kickers are, typically, about 10% of the debt quantum and usually translate to less than 1% ownership in the firm on a fully diluted basis.

Also ReadAdani Enterprises’ Q3 profit plummets by 88.41% to Rs 228.64 crore, revenue down 8.79% YoY

For limited partners (LPs) of a venture debt fund, returns usually range between 15-20%, while venture capital funds offer returns north of 25%. Venture debt is typically only available to firms with institutional backing, so much of the uptick in venture debt deals hinges on the recovery in venture capital investments.

In 2024, venture debt investments were estimated to be around $900 million, nearly the same as the year before, while venture capital funding in tech companies improved marginally by about 6%.

Trifecta raised capital for its fourth fund from insurance companies, large family offices, corporate treasuries, and offshore banks, among others. “The challenge for us is that the domestic institutional sources of capital are still quite limited,” Khanna said, adding that globally,

 » Read More

Related Articles

JB Pharma is riding the CDMO Opportunity. Jefferies reiterates buy…

Jefferies has maintained a Buy on JB Pharma with a revised target price of Rs 2,310. The stock currently trades at Rs 1,714/share implying an 34% upside. This new target price is just a shade lower than the previous target price of Rs 2,340. According to Jefferies, an international brokerage house, the growth drivers are

Two banking stocks to watch ahead of the RBI Policy

By Kiran Jani Bank Nifty reached its all-time high of 54,467 in September 2024. Following this peak, the index experienced a correction, dipping to 47,844 in January 2025—a decline of 7.29%. Despite this pullback, Kotak Bank and ICICI Bank showed relative resilience, delivering returns of 1.61% and -4.20%, respectively, during the same period. Source: Investing.com

New Tax Regime: These deductions, exemptions still available for you

The Indian government introduced a new tax regime in 2020, offering lower tax rates while removing several exemptions and deductions available under the old system. Initially optional, this regime became the default in 2023, requiring taxpayers to opt out if they wished to continue under the old structure. Despite the removal of many benefits, certain

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Stay Connected

0FansLike
0FollowersFollow
0SubscribersSubscribe
- Advertisement -

Latest Articles

JB Pharma is riding the CDMO Opportunity. Jefferies reiterates buy…

Jefferies has maintained a Buy on JB Pharma with a revised target price of Rs 2,310. The stock currently trades at Rs 1,714/share implying an 34% upside. This new target price is just a shade lower than the previous target price of Rs 2,340. According to Jefferies, an international brokerage house, the growth drivers are

Two banking stocks to watch ahead of the RBI Policy

By Kiran Jani Bank Nifty reached its all-time high of 54,467 in September 2024. Following this peak, the index experienced a correction, dipping to 47,844 in January 2025—a decline of 7.29%. Despite this pullback, Kotak Bank and ICICI Bank showed relative resilience, delivering returns of 1.61% and -4.20%, respectively, during the same period. Source: Investing.com

New Tax Regime: These deductions, exemptions still available for you

The Indian government introduced a new tax regime in 2020, offering lower tax rates while removing several exemptions and deductions available under the old system. Initially optional, this regime became the default in 2023, requiring taxpayers to opt out if they wished to continue under the old structure. Despite the removal of many benefits, certain

Range bound session: Nifty ends above 23,600, Sensex holds 78,000 led by Adani Ports, Infosys

The stock markets faced a downturn on Thursday, with major indices closing in the red. The BSE Sensex dropped by 213.12 points or 0.27%, ending the day at 78,058.16, while the NSE Nifty 50 saw a decline of 70.15 points, down by 0.3%, and closed at 23,626.15. The Nifty Bank index also ended the day

IT stocks stable as Cognizant raises annual and quarterly revenue guidance

Shares of Indian IT companies are in the spotlight today after the Nasdaq-listed IT services major Cognizant Technology Solutions, reported its Q4 results that exceeded Wall Street expectations. The Nifty IT Index as well as individual tech counters like Infosys, Wipro, Tech Mahindra and HCL Tech are all in the green even as the markets