Foundation PE Expands India Operations as Secondary Market Momentum Builds
Foundation PE is expanding its India operations as the country's secondary market gains momentum, having completed four of eight first-fund deals in India. The Singapore-based firm recently added Dinesh Tiwari as venture partner and plans selective team expansion from its current three-member India presence. India's secondary market growth is driven by $78 billion in PE/VC fund commitments since 2020, with the country ranking third globally in venture-backed unicorns and accounting for 20% of Asia's PE/VC investments in 2024.
*this image is generated using AI for illustrative purposes only.
Foundation PE, a Singapore-based pan-Asian secondaries firm, is significantly ramping up its India operations as the country's secondary market experiences unprecedented momentum. The firm has identified India as its most critical market within its Asian strategy, having completed four of its eight first-fund deals in the country.
Strategic India Focus
"India was our most important market for our Asian strategy, and we did half of the eight deals from our first fund in the country. The region is emerging as one of the most interesting secondary markets out there driven by a conducive regulatory environment and we think there are a lot of the right conditions for this market to really develop," said Jason Sambanju, partner, chief executive and founder.
Foundation has been expanding its local presence, recently onboarding Dinesh Tiwari as venture partner. The firm currently maintains three team members in India and plans selective expansion to capture early market opportunities.
| Parameter: | Details |
|---|---|
| Current India Team: | 3 people |
| First Fund India Deals: | 4 out of 8 total deals |
| Recent Addition: | Dinesh Tiwari as venture partner |
| Market Position: | Limited competition in specialized space |
Market Dynamics and Growth Drivers
The firm's growing India focus aligns with broader market trends as global and domestic players capitalize on expanding secondary opportunities. This growth is primarily driven by funds nearing end-of-life cycles seeking liquidity to return capital to investors.
Private equity and venture fundraising have experienced remarkable growth, with investors committing $78 billion to India-focused PE/VC funds since 2020, according to a Morgan Stanley report. India now ranks third globally in venture-backed private unicorns, following the US and China, and accounted for 20% of all private equity and venture capital investments in Asia during 2024.
Competitive Landscape and New Entrants
The Indian secondary market has attracted significant new players and capital commitments:
| Player: | Fund Details |
|---|---|
| Oister Group & Tribe Capital: | $500 million India-focused secondary fund |
| 360 One Asset Management: | ₹5,000 crore secondaries fund |
| Kenro Capital: | Late-stage secondary deals (undisclosed size) |
| Neo Asset Management: | Secondary strategy rollout |
Global players such as TR Capital and TPG NewQuest have also maintained active participation in India's secondary market.
Transaction Focus and Execution Strategy
Founded in 2017, Foundation specializes in mid-market transactions, partnering with general partners (GPs) and limited partners (LPs) to structure liquidity solutions across various fund lifecycle stages. The firm executes only GP-led and LP-led secondary transactions in India.
In GP-led secondary transactions, fund managers generate liquidity from portfolio companies to return capital to LPs while continuing asset management. Foundation has completed two single-asset continuation funds in India, though transaction details remain undisclosed.
"We specialize in this area where we focus on working with GPs to help them identify opportunities to create liquidity and where limited partners can get their returns or maybe even use the capital to re-invest in the GP's next fund," Sambanju explained.
Market Development and Future Outlook
The LP-led secondary market remains in nascent stages in India, requiring scale development and willingness from large entities to sell at market values. Foundation acquired all LP interests in Prime Venture Partners' first fund in 2022, demonstrating active market participation.
Current market dynamics show traditional public entity LPs often reluctant to accept typical secondary transaction discounts, creating opportunity costs that continue evolving in the Indian market context.
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