Interesting.

Investment firm WestBridge Capital has raised India’s first so-called evergreen fund from global investors, or limited partners (LPs).

Unlike traditional funds, the $500 million (around Rs 2,500 crore) corpus that WestBridge has raised will not have an investment cycle. Instead, returns generated on investments will automatically be ploughed back into the investment pool, creating a perpetual flow of capital for investments. In other words, this evergreen fund will do away with the need of raising subsequent funds for investments.

This comes with a variable lock-in period:

WestBridge’s debut $500 million fund will have a life cycle of 20 years and could be extended by at least another 10 years or even more. There is a lock-in period for investors and the LPs will not be allowed to withdraw investments for a stipulated period. The WestBridge executives, however, declined to say how long the lock-in period is.

Comments?

Udhay Shankar N

Udhay is a veteran of the technology and entrepreneurship scene, having helped found his first entrepreneurial venture straight out of college in 1991. Since then, he has been invoved in various pioneering ventures,
including (among other things) India's first web site company (in 1995), and India's first startup to get silicon valley venture capital funding (in 1999). He has helped build Yahoo!'s first social media network (before facebook existed) and was recently helping Intel build new products for the Indian consumer. In addition, he set up and ran the startup accelerator at the VC fund, Axilor Ventures, and spends a lot of time helping startups of various kinds further refine their product and strategy.

He is also the force behind the well-known discussion group silklist, since 1997, which makes it one of the longer-lived email lists on the net. Discussions on silklist have ended up inspiring articles, books, Ph.D theses, and sociological studies. Recently, he helped found the 'unconference' styled event, The Goa Project, which aims to bring interesting people of all types together to learn and collaborate..

More info about Udhay on Linkedin.