Chennai : Spark Capital Investment Management (SCIM), Spark Capital’s asset management business, today announced the first close of its second late-stage growth private equity fund, Spark Midas Investment Fund – II. Completed on November 2, 2026, the first close secured aggregate capital commitments of ₹1,649 crore from ultra-high-net-worth individuals, family offices and corporates.
Midas Fund II, a Category II Alternative Investment Fund (AIF) scheme launched by Spark Capital with a target corpus of ₹1,500 crore, witnessed strong investor demand, resulting in the entire target corpus being subscribed within approximately eight weeks of its launch. In response to the strong investor interest, the Investment Manager subsequently re-filed the fund’s Private Placement Memorandum (PPM), increasing the fund size to ₹2,000 crore, inclusive of a ₹1,000 crore greenshoe option.
The fund continues to accept investor commitments and has a five-year tenure from first close, extendable by up to two years.
The fund follows the success of Spark Midas Investment Fund – I, which raised commitments of ₹463.6 crore and invested in six companies within its first 20 months. Four of these portfolio companies have since been listed, including SEDEMAC Mechatronics and Kusumgar, reflecting the fund’s investment activity and portfolio progression.
The fund focuses on investing in profitable, well-governed companies that are typically around 12 to 36 months away from a potential liquidity event. These events may include an initial public offering (IPO), a strategic sale or a secondary sale to institutional investors or family offices. Midas Fund follows a Growth at Reasonable Prices (GARP) investment approach, balancing companies’ earnings growth potential and balance-sheet strength against their entry valuations. In addition to pre-IPO opportunities, the fund may invest up to 25% of its corpus in listed small- and mid-cap companies, providing flexibility to capture opportunities across the market.
The fund follows a sector-agnostic approach, focusing on opportunities across consumer premiumisation, financial inclusion, export-led manufacturing and government policy-led growth. It targets fundamentally strong companies with revenues above ₹250 crore and positive EBITDA, while capping exposure to any single company at 25% of investable funds to ensure portfolio diversification and manage concentration risk.
Fund investors may also co-invest in individual portfolio companies. Accredited investors may co-invest up to three times their look-through exposure to a company through a co-investment vehicle (CIV) established under SEBI’s AIF regulations. Larger allocations may be made through a co-investment portfolio management service. Co-investments carry no carried interest. The fund’s carried interest structure is aligned with investor returns, with the Investment Manager entitled to 20% of returns only after investors achieve a pre-tax hurdle rate of 10%. The structure has no catch-up provision.
Rajesh K. Parikh, Managing Partner and Fund Manager – Spark Capital Investment Management, said: “Our research shows that nearly 150 of India’s 500 largest listed companies at the end of 2025 were not listed in 2017. Many of tomorrow’s market leaders are still private. The best time to back them is typically 12 to 36 months before listing, once their businesses are proven. With listing-day gains narrowing and investors becoming more selective, entry valuations matter more than ever. In Fund II, we will maintain valuation discipline and back profitable, well-governed companies with a clear path to liquidity. We will also offer investors the option to build larger positions in our highest-conviction investments through co-investment.”
The first close comes at a time when India’s IPO market is evolving, with investors placing greater emphasis on earnings quality, corporate governance and valuations. According to Grant Thornton Bharat, 109 companies raised approximately ₹1.77 lakh crore through mainboard IPOs in FY26 (April 2025–March 2026). Average listing-day gains moderated to 7%, compared with 29 in the previous year, reflecting a more discerning investment environment.
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