Avendus Future Leaders Fund III invests Rs 140 crore in PPFAS

Avendus Future Leaders Fund III has invested around Rs 140 crore in Parag Parikh Financial Advisory Services (PPFAS) through a secondary transaction.

The fund acquired about a 1% stake by purchasing shares from PPFAS chairman and CEO Neil Parag Parikh and wealth management president Khushboo Joshi. It expects to hold the investment for four to five years.

Ritesh Chandra, managing partner of Avendus Future Leaders Fund, said the investment was based on the long-term movement of Indian household savings towards financial assets and PPFAS’s position in the asset-management market.

He said the company had maintained a consistent investment strategy while placing investors’ interests at the centre of its approach.

Chandra said the transaction was a long-term private-markets investment and was not dependent on PPFAS pursuing a stock-market listing.

“We are not investing based on any possible IPO event. Our investment thesis is centred on the business and its long-term value creation,” Chandra said.

He added an IPO could provide one possible route for Avendus to exit, but other options would remain available.

PPFAS was incorporated in 1992 and is the promoter of PPFAS Asset Management. Its flagship Parag Parikh Flexi Cap Fund had assets under management of Rs 1,43,388.43 crore on 30 June 2026, according to the fund’s official factsheet.

Neil Parag Parikh said the partnership marked an important stage in the company’s expansion into a broader asset-management platform covering mutual funds, wealth management, GIFT City funds, private equity and the National Pension System.

The transaction is FLF III’s fourth investment, following its investments in La Renon Healthcare, Aragen Life Sciences and IL JIN Electronics.

FLF III is about 30% deployed and expects to reach its final close at around Rs 1,800 crore by the end of July. Avendus plans to make another five or six investments over the next 12 months, with manufacturing, healthcare and financial services among its priority sectors.