New Delhi, July 28 -- JM Financial Private Equity, the alternative investment platform of the Nimesh Kampani-founded financial services group, is preparing to hit the market with a new fund after a gap of four years, at least three people familiar with the development told VCCircle.

The firm, which has backed companies such as Zoff Foods, BigHaat Agro, Emiza Supply Chain Services, Walko Food and online pharmacy PharmEasy's parent, has begun preliminary discussions with investors for its fourth vehicle, the people said.

The fund manager is expected to target a corpus of Rs 1,500-1,800 crore ($156-187 million), although the final contours of the vehicle are yet to be decided, VCCircle has learnt.

An email sent to JM Financial remained unanswered till the time of publishing this article.

The PE firm is currently deploying capital from its third fund, which was launched in FY22 and closed shortly thereafter. The firm had initially targeted around Rs 1,500 crore for the vehicle, though its final close size couldn't be immediately ascertained.

In April this year, the PE firm invested in a bootstrapped contract manufacturer operating in the beauty, personal care and nutraceutical segments through its third fund.

Later that month, JM Financial PE led a Rs 90 crore ($10.8 million then) secondary investment in Green Gene Enviro Protection and Infrastructure Ltd, betting on rising demand for hazardous waste management and alternative fuels as environmental regulations tighten in India.

JM Financial PE launched its maiden JM Financial India Fund nearly two decades ago, making 13 investments, including LIC Housing Finance and GMR Airports, both of which it has since exited.

Its second fund, launched in 2017, invested in 10 companies, including Spandana Sphoorty Financial, Canpac Trends, Innovcare Lifesciences, Walko Food, BigHaat Agro, Emiza Supply Chain Services, and India Home Loan.

The firm's first and second funds had corpus sizes of Rs 1,000 crore and Rs 600 crore, respectively.

Investments from its third fund include PharmEasy's parent, agricultural machinery company Balwaan, bottled water brand Clear, ad-tech firm SilverEdge, NG Electro Products, and Green Gene Enviro Protection and Infrastructure.

JM Financial's latest fundraising plans come as several private equity firms tap the market to raise fresh funds.

Last week, VCCircle reported that homegrown private equity firm Lighthouse Funds is preparing to launch its fifth India-focussed vehicle, larger than its predecessor, as it seeks to expand assets under management to around $2 billion.

Earlier this month, VCCircle reported that Mumbai-based financial services company Avendus Capital aims to achieve the final close of its third PE fund at around Rs 1,800 crore by the end of July.

In March, VCCircle reported that Equirus Alternatives, the alternative investments arm of Equirus Group, was preparing for the first close of its maiden private equity fund.

In January, VCCircle reported that 2380 Capital, a mid-market private equity firm founded by two former ADV Partners executives, had begun raising its debut India-focussed fund.

Further, Motilal Oswal Alternates achieved the final close of its fifth PE fund in December last year, while ChrysCapital closed its 10th India fund at $2.2 billion in November, setting a record for the country's largest sector-agnostic private equity fund.

Published by HT Digital Content Services with permission from VC Circle.