ValueQuest’s manufacturing fund raises ₹2,100 crore, surpassing its target

ValueQuest Tristar Fund, a private equity fund focused on India’s advanced manufacturing sector, has raised more than ₹2,100 crore in investor commitments, exceeding its original target, including the full greenshoe option, within 15 months of its first close.

The fund invests in aerospace, defence, precision engineering and manufacturing businesses linked to the energy transition. It has invested in four companies so far: Hi-Q Electronics, Rangsons Aerospace, Waaree Energy Storage Solutions and Trusted Aerospace & Engineers (TASE Global).

Hi-Q Electronics makes printed circuit boards for the aerospace and defence sectors. Rangsons Aerospace specialises in fluid distribution systems and satellite communications. Waaree Energy Storage Solutions operates in battery energy storage, while TASE Global is a precision engineering company with cross-border manufacturing capabilities.

ValueQuest said its investment approach relies on sector research and mapping industrial supply chains to identify specialised manufacturers.

Aniket Dharamshi, co-founder and managing partner of ValueQuest Investment Advisors, said the fund looks for businesses at different stages of development and assesses their ability to meet company-specific milestones.

Arvind Ananthanarayanan, partner at ValueQuest Private Equity, said the fund focuses on companies with expertise in manufacturing processes, the ability to qualify as suppliers to customers, and a consistent record of quality and reliability.

Separately, ValueQuest Private Equity said it continues to raise its SCALE Fund II, which focuses on growth and late-stage investments in businesses with established models, identifiable competitive advantages and clear paths to liquidity.

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