Peak XV Partners (formerly Sequoia Capital India & SEA) has announced significant adjustments to its investment strategy, signaling a long-term vision for growth. The firm expressed confidence in the potential of India and Southeast Asia, stating that its conviction to invest in the region has “never been stronger.” The company is on track for one of its best years in terms of distributions and exits, driven by robust portfolio performance.
Key Updates:
- Peak XV Partners has re-sized its 2022 vintage funds by 16%, reflecting a strategic adjustment to align with the current market conditions, particularly India’s richly priced public market.
- While remaining cautious in its growth fund investments, Peak XV will continue to focus on seed and venture stage opportunities.
- The firm has also decided to link part of its carried interest to the distribution of profits in growth and multi-stage funds, while leaving seed and venture fund economics unchanged.
Despite making contrarian moves amid market exuberance, Peak XV believes these changes will serve its founders and limited partners (LPs) well in the long run. The changes have been well-received by stakeholders, as reflected in positive feedback from a large non-profit LP, which highlighted Peak XV’s alignment with entrepreneurial success and long-term investment goals.
