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Peak XV Partners, the largest venture firm focused on India and Southeast Asia, has announced a significant reduction in the size of its funds. The firm, formerly part of Sequoia Capital, is cutting its latest growth fund by $465 million, or approximately 16%, from its $2.85 billion 2022 vintage fund. This move is part of an effort to deploy capital more judiciously and return uninvested monies to its limited partners (LPs) amid a market frenzy. In addition to the fund size reduction, Peak XV is lowering management fees and carry for its growth and multi-staged funds to 2% and 20%, down from 2.5% and 30%. This adjustment aims to align more closely with market conditions and investor expectations. Despite these cuts, Peak XV remains the largest venture firm in the region. For context, Accel India and Nexus had raised $700 million each in the 2021-2022 bull run, which is 70% less than Peak XV.
🚨 Peak XV's move to cut its fund size by 16% has caught the headlines. But the bigger change was Peak XV reducing fees and profit share for seven of its funds 📉 This will mean hundreds of millions of dollars in additional payouts to its LPs 💰 https://t.co/4wyGNLoTbT
Peak XV Partners has bowed to Indian market realities by reshaping its fund, making cuts to both volume and capital. Peak XV announced it will no longer call for $465 million of the committed $2.85 billion from 2022. @akm1410 and @Harveen_A write: https://t.co/68HWNOinwD
Compare and contrast: ' @CRV will tell its investors this week that it will return the $275 million that it has not yet invested from its $500 million Select fund, which is designed to back more mature start-ups. The reason, four of the firm’s partners said in a joint… https://t.co/aHSk5LewfQ
