Oister Global has announced the launch of ACE Fund III, its third vehicle dedicated to secondary investments in late-stage startups. The new fund has a target corpus of ₹500 crore, comprising a base size of ₹250 crore and a greenshoe option of the same amount. This launch elevates the total capital committed across Oister's ACE franchise to over ₹1,000 crore, underscoring its significant presence in the market.
Building on Previous Success
The new fund follows the remarkable success of its predecessor, ACE Fund II, which was oversubscribed two times, raising ₹400 crore against an initial target of ₹200 crore. From this fund, Oister has already completed five investments, with two of the portfolio companies having their valuations marked up. This strong performance highlights growing investor appetite for secondary opportunities in India’s private markets and validates Oister's strategic focus.
The firm's track record is further solidified by ACE Fund I, from which half of the portfolio companies have achieved public market outcomes through listings, DRHP filings, or exits. These companies have also demonstrated robust financial health, reporting an average of 32% year-on-year revenue growth and a 54% expansion in margins. Such results showcase the effectiveness of investing in proven, late-stage businesses with clear growth trajectories.
A Transparent Investment Strategy
Oister Global differentiates its approach with a unique "glass box" structure, offering limited partners a clear view of potential investments before they commit capital. This model is designed to solve key challenges in private markets like a lack of transparency and long lock-in periods. By shortening the fund duration to five years, the firm aims to provide more timely liquidity opportunities for its investors.
ACE Fund III will continue to target late-stage, high-growth companies with strong unit economics and well-defined pathways to liquidity. The investment thesis centers on market leaders in legacy sectors being disrupted by technology, such as MSME financing and intercity mobility. This focus on established industries undergoing technological transformation provides a stable foundation for generating returns while mitigating risk.
Capitalizing on a Growing Market
The launch comes as the secondary market gains prominence in India, offering a vital exit route for early investors and founders amid delayed public offerings. Oister Global estimates that India's annual secondary market opportunity could reach as high as $20 billion, fueled by increasing demand for liquidity. This structural shift positions secondaries as an institutional-grade strategy rather than just a liquidity mechanism.
A significant indicator of market maturity is the source of capital, with Oister reporting that 98% of its funds have been raised from domestic investors. This includes family offices, institutional investors, and high-net-worth individuals, signaling a strong local belief in the secondary asset class. This trend contrasts with the broader alternative investment industry, showcasing deep-rooted confidence in Oister's platform.
The introduction of ACE Fund III marks a significant milestone for Oister Global, reinforcing its position as a key player in India's burgeoning secondary investment landscape. With a proven track record, a transparent investment model, and strong domestic backing, the fund is well-equipped to capitalize on market demand. This move ultimately reflects the growing institutionalization of secondaries as a structured, return-oriented asset class within the Indian startup ecosystem.