Peak XV to build evergreen fund supported by partners: source

Peak XV’s Shailendra Singh on stage at Tech in Asia Conference 2023 / Photo credit: Tech in Asia

Peak XV, previously known as Sequoia Capital India and Southeast Asia, is set to launch a fund supported by its own team, a source close to the company told Tech in Asia.

Called the Peak XV Anchor Fund, it will be a perpetual investment vehicle. In this vehicle, permanent capital is managed for an unlimited period in contrast to a typical VC fund, which has a 10-year cycle.

The fund would leverage its internal balance sheet and make investments into Peak XV’s main funds.

Sequoia had introduced a perpetual fund model for its Sequoia Fund in 2022, but it was limited to its US and Europe operations.

The company did not share why its Asia business was excluded, but VCs that Tech in Asia spoke to at the time noted how the region may not have been ready for perpetual funds. Most investment firms then were still following the 10-year investment horizon, which has been popular since the 1970s.

While Peak XV’s leaders have been contributing to the company’s main funds, Peak XV Anchor Fund would be the first time that their involvement is institutionalized, Tech in Asia‘s source said. The new fund would also allow Peak XV to align better with the goals and visions of ita limited partners.

The Peak XV team will also collaborate with fund managers across regions for the new fund. The VC firm announced the new fund at a two-day gathering of over 100 global investors, according to the source.

While the person did not comment on the fund’s size, Peak XV Anchor Fund is said to be starting small and will “compound over time.”

The development was first reported by TechCrunch, which suggested that the fund aims to invest in new fields for Peak XV.

Peak XV has invested in over 400 companies, with around 40 exceeding US$100 million in revenue. Peak XV controls over US$9 billion in assets under management.

See also: Is Asia ready for Sequoia’s perpetual fund model?