In a significant move for India's private equity landscape, homegrown firm ChrysCapital has announced the closure of its largest-ever fund, a massive $2.2 billion war chest. This development signals a strategic pivot for one of the country's oldest investment firms, which is now prepared to embrace higher-risk opportunities, particularly in the burgeoning manufacturing sector.
A New Appetite for Risk and Control
Saurabh Chatterjee, the Managing Director at ChrysCapital, revealed that the firm is actively looking at situations where it can take on more risk than it has historically been comfortable with. This change in stance comes after observing peers successfully execute such strategies. The firm's renewed risk appetite will focus on backing companies with weaker operations, stepping in to fix them, and creating substantial value.
This approach aligns with a broader trend where private equity firms are aggressively scouting for buyouts of traditional, legacy businesses. These assets often present an opportunity for higher returns after a period of restructuring and operational improvement. Chatterjee confirmed that India's market is now ripe for such buyouts, with more business promoters showing a willingness to cede control.
However, ChrysCapital's strategy is not limited to majority buyouts. "Even in a minority deal, if the entrepreneur acknowledges the problems and is committed to fixing them, that's also a business we could consider backing," Chatterjee stated. This nuanced approach underscores that the ultimate driver is returns, not just the type of deal structure.
Manufacturing: The Resurgent Focus
After a hiatus of nearly five years, ChrysCapital is making a decisive return to the manufacturing sector. The firm had stepped back around 2019-20 when sectors like IT services, financial services, and healthcare offered a more favourable risk-reward balance.
The landscape has since transformed. A combination of global supply chains shifting away from China, India's expanding labour force, and strong government support for domestic production has made manufacturing an attractive bet once again. Chatterjee emphatically stated, "The next phase of India's growth has to be driven by manufacturing."
The firm is actively evaluating deals across electronics manufacturing services, components, and data centre supply chains—areas it terms the "picks and shovels of the AI revolution." This focus has already translated into action. In September 2025, ILJIN Electronics India, a part of the Amber Group, raised ₹1,200 crore from ChrysCapital and InCred Growth Partners. Reports also suggest ChrysCapital is a leading contender for a significant minority stake in Nash Industries.
A Shift in Global Investor Confidence
The composition of the latest fund, named ChrysCapital X, reveals a significant shift in the profile of its investors, known as Limited Partners (LPs). Of the total $2.2 billion, over $1.7 billion was committed by global investors, with approximately $300 million coming from domestic institutions and family offices. This marks a dramatic change from previous funds, where domestic capital was "almost zero."
Japan emerged as a standout, with ChrysCapital adding six or seven new LPs from the country contributing close to $200 million, a substantial increase from just one Japanese investor in the prior fund. Chatterjee attributed this shift to a broader reassessment of Asian markets by global capital. "China has become a tough place to invest... Now, global LPs are saying, if not China in Asia, then where? The flavour of the year for LPs has been India and Japan," he explained.
The fund also attracted new capital from Middle East family offices, a France-based family office, and a large US public pension fund, with many of these investors taking their first-ever exposure to the Indian market.
ChrysCapital's Enduring Legacy
Founded by Ashish Dhawan in 1999, ChrysCapital is one of India's pioneering homegrown private equity firms. The firm invests across enterprise technology, financial services, healthcare, and consumer sectors, with a portfolio that includes marquee names like the National Stock Exchange, Hero FinCorp, Theobroma, and Intas Pharma.
To date, the firm has raised a total of $5 billion across its first nine funds, invested nearly $4.5 billion in over 100 companies, and realized about $7 billion from roughly 80 exits. It has fully exited its first six funds, demonstrating a strong track record of returns.
With the new $2.2 billion Fund X, which is over 60% larger than its $1.35 billion predecessor, Fund IX, ChrysCapital now manages a total of 12 funds. This portfolio includes 10 private equity funds, one public markets fund, and one continuation vehicle. The firm is currently in the deployment phase for Fund X while simultaneously executing exits from Fund VIII.
This massive fundraise places ChrysCapital alongside peers like Kedaara Capital, which closed a $1.73 billion Fund IV in 2024, highlighting the intense investor interest and confidence in the long-term growth story of the Indian economy.
