New Delhi, Nov. 12 -- Mumbai-based ValueQuest Group has made two more investments from the Tristar Fund, its manufacturing-focussed private equity vehicle that has exceeded the initial fundraising target.
The firm, which last week said it backed Chennai-based precision engineering and manufacturing platform Trusted Aerospace & Engineering (TASE Global), has also invested in Sagar Defence Engineering, a defence-manufacturing company, and Rational Engineers, a maker of specialized conductors.
The fund has committed a total of Rs 775 crore across the three bets, ValueQuest said in a statement Thursday.
The fund invests in sectors such as aerospace, defence, precision engineering, manufacturing and energy transition, backing businesses that stand to benefit from shifting global supply chains and India's industrial push.
The firm said previously it committed to invest Rs 300 crore in TASE Global. This means it has put in Rs 475 crore in Mumbai-based Sagar Defence and Thane-based Rational Engineers.
"These investments come from a pipeline built through years of research and long-term relationships with entrepreneurs," said Aniket Dharamshi, co-founder and managing partner, ValueQuest.
"Our focus is not on the pace of capital deployment, but on identifying the right businesses where we can build conviction and contribute meaningfully to their next phase of growth. We aim to partner with entrepreneurs in scaling their businesses, strengthening organisational capabilities and institutionalising governance," he added.
ValueQuest, which forayed into private markets three years ago, launched the Tristar Fund, its second PE vehicle, last year with a target corpus of Rs 600 crore ($70 million), with another Rs 400 crore reserved as a greenshoe option. It marked the first of the fund in June 2025.
Earlier this year, the firm increased the target size of the Category-II alternative investment fund (AIF) to Rs 1,500 crore, along with a Rs 500-crore greenshoe option. Last week, it said it had exceeded the initial fundraising target for the vehicle, collecting Rs 2,100 crore ($221 million) for the fund.
The fund has attracted investments largely from domestic limited partners, family offices, among others. Dharamshi said the fund did not attract capital from institutional or foreign LPs in this class as some investors face restrictions on backing businesses in sectors such as defence in India.
The fund aims to construct a concentrated high-quality portfolio across precision engineering, aerospace, defence and energy anchored in the Indian manufacturing opportunity. It will target a significant minority stake of up to 25% in each company, with cheque sizes of Rs 250-325 crore across multiple tranches.
The fund's portfolio also includes Hi-Q Electronics, a manufacturer of printed circuit boards for the aerospace and defence industries; Rangsons Aerospace, which specialises in fluid distribution systems and satellite communications; and battery energy storage provider Waaree Energy Storage Solutions.
ValueQuest Private Equity is the private equity arm of ValueQuest Investment Advisors, through which the company manages over Rs 6,000 crore across two investment strategies, three funds and co-investments. Overall, the investment manager oversees around $3.4 billion across public and private markets.
Separately, the company is raising its sector-agnostic SCALE II fund, which hit the halfway mark in February and is expected to hit final close later this year, VCCircle reported earlier. Its first fund, SCALE I, is in the process of monetising its investments, having delivered a mix of successful exits and underperforming bets.
Published by HT Digital Content Services with permission from VC Circle.