Investment firm Oister Global on Wednesday launched ACE Fund III, a Rs 500 crore secondaries-focussed vehicle, as demand for secondaries grows on the back of delayed IPO exits.
The fund will back late-stage, high-growth startups with strong unit economics and clear liquidity pathways, Rohit Bhayana, cofounder of Oister Global, told ET.
The firm said the ACE strategy is built around what it calls a “glass box” structure, where the fund’s limited partners are shown the direction (names of companies) in which the fund plans to invest before they put money in the fund. Bhayana said this approach was primarily aimed at solving three key challenges in private markets — lack of transparency, long lock-in periods, and delayed liquidity.
“We created a glass-box structure where investors can see the broad direction of investments instead of investing in a completely blind pool,” Bhayana said.
He added that unlike traditional private market funds that typically run for 10 years, Oister has reduced the duration to five years while continuing to create liquidity opportunities throughout the investment cycle. “The companies we invest in are category leaders with very strong demand for their equity. That creates flexibility while exiting,” Bhayana said.
Oister’s earlier ACE funds have invested in companies such as Bluestone, Kuku FM, Shiprocket, BlackBuck, and Purplle. According to the firm, multiple companies from ACE Fund I have already listed, filed DRHPs, or delivered exits, while ACE Fund II has already seen valuation markups in subsequent funding rounds. Bhayana said Fund II was oversubscribed by 2x, reflecting strong investor appetite for secondary-focussed private market funds.
ACE I was launched in partnership with US-based VC firm Tribe Capital. For fund three, Tribe continues to be a part of the investment team.
For ACE Fund III, the firm is looking at sectors such as MSME invoice financing, grooming and personal care,
digital identity verification, organised intercity mobility, and few others. Bhayana said the larger investment theme is focussed on “market leaders in legacy sectors being disrupted by technology,” rather than pure consumer internet companies. The firm has already named the companies in its pitch deck for LPs and investors.
“These are age-old sectors with massive existing demand. What these new-age companies are doing is using
technology, supply chain optimisation, pricing algorithms, digital infrastructure, and operational efficiency to dominate these sectors,” he said.
